Exxon to exit Australian coal

Exxon has put its Lemington and Ulan mines on the market as it packs its bags to leave the Australian coal industry.

Staff Reporter

Exxon Mobil Corp plans to sell its interests in the Lemington and Ulan coal mines, both in New South Wales.

Exxon subsidiary, Exxon Coal and Minerals, has put its wholly-owned 3.4 million tonne per annum open-cut Lemington mine on the market. Included in the sale is a 44% interest in Mount Thorley Coal Loading, which services Hunter Valley mines.

Exxon also announced that it plans to sell its 36% interest in the Ulan open-cut and underground mine in NSW's western coalfields. Exxon's partner, Mitsubishi Development, will put its 49% in the mine up for competitive tender at the request of potential buyers.

Analysts suggest likely purchasers of both assets include companies such as Glencore, Billiton and Anglo.

Exxon said that following approaches from a number of potential buyers for the Lemington mine, Macquarie Bank had been appointed to act as its financial adviser and to assist in the sale process. Macquarie will also oversee the sale of Ulan.

Mitsubishi Development will retain a 10% interest in Ulan and continue its sales and marketing role with the mine after the sale.

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