Gloucester secures coking coal contract

TAKEOVER target Gloucester Coal has negotiated a coking coal contract at a premium for product destined for an unnamed emerging market in north Asia.
Gloucester secures coking coal contract Gloucester secures coking coal contract Gloucester secures coking coal contract Gloucester secures coking coal contract Gloucester secures coking coal contract

Leighton works at the Duralie mine.

Lou Caruana

The contracted price for the 25,000-tonne sale has been agreed at $US164/t (less commission), which is a hefty premium to current contracted prices, Gloucester chief executive Barry Tudor said.

“This contract in a new market is an important step towards our previously announced strategy of expanding our customer base as production increases,” he said.

“The price also supports the company’s belief that the outlook for coking coal is strong.”

Gloucester primarily exports both thermal and coking coal products into specific market niches.

Macarthur Coal announced just before Christmas it intended to acquire 100% of Gloucester in an off-market takeover with an all-scrip offer and cash alternative.

The deal is worth $A175 million cash and 22.5 million Macarthur shares issued at $9.70 per share.

Macarthur will issue a bidder’s statement by early March and will hold a shareholders’ meeting mid-April. The Gloucester offer is expected to close early May.

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