The agreement will be settled in two tranches, with $41.7 million already received and the balance due once Whitehaven receives approval for State 2 of the project from the New South Wales government.
The Narrabri joint venture is now held by J-Power, Europe’s EDF Trading and China’s Upper Horn Investments, all with 7.5% each, with Whitehaven holding the balance.
The $369 million raised from the sale will be used for Whitehaven’s development costs for both stages of the Narrabri project in NSW’s Gunnedah Basin.
“The completion of the J Power transaction brings together three major international power generating companies as partners into the Narrabri JV and provides the JV with the bulk of finance necessary to construct the Narrabri project, a longwall mine with planned production of approximately 6 million tonnes per annum of high quality export coal,” Whitehaven managing director Tony Haggarty said.
Initially as a bord and pillar operation, the development is expected to produce first coal late next year.
Whitehaven was trading unchanged at $1.06 mid-morning today.