Boggabri Coal to Acquire Major Mobile Mining Assets
NRW Holdings Ltd announced that Idemitsu Group’s Boggabri Coal Operations Pty Lt has exercised an option to acquire the majority of the major mining equipment of Golding Contractors Pty Ltd, a wholly owned subsidiary of NWH, that is engaged under the maintenance services and hire agreement at the Boggabri Coal Mine. The agreement will see the sale of 38 major mobile mining assets from Golding to BCO with a target completion date of the end of July 2021. Golding will continue to perform maintenance services on the site across these, and another 50 (approximately) pieces of major mining equipment, engaging a workforce of over 150 personnel on site.
BCO’s exercise of the option will reduce group pre-tax earnings by approximately AUD 1.8 million/y. The equipment will be sold for approximately AUS$81 million, of which approximately AUD 64 million will pay down asset financing debt. The transaction reduces pro forma net debt (unaudited) from approximately AUD 115 million as at 30 June 2021 made up of cash of AUD 145 million and interest bearing debt of AUD 260 million) to AUD 34 million.