Austral shareholders approve $22M convertible notes issue

AUSTRAL Coal shareholders yesterday approved the issue of 40 million unsecured convertible notes, raising $22 million towards the expansion of Tahmoor North.

Angie Tomlinson

The issue was closed early and oversubscribed by September 11.

The convertible notes were allotted today and will begin trading on the ASX on October 7.

Proceeds from the note issue will be used to fund expansion of productive capacity at the company’s Tahmoor mine where production from the Tahmoor North are is expected to commence in March 2004.

The project is proceeding on schedule and more than $50 million of the $135 million capital expenditure program has been spent and a further $60 million has been contracted.

New equipment to be installed includes 159 DBT roof supports, a Joy shearer and a conveyor belt system.

An initial shipment of 30 roof supports from DBT’s German plant will arrive in late October and the remainder will arrive in Sydney by early December.

The Joy shearer is complete and was exhibited at AIMEX and the installation of the conveyor belt system is well underway.