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Wesfarmers to off-load Curragh coal mine in Queensland for A$700M

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Wesfarmers to off-load Curragh coal mine in Queensland for A$700M

Wesfarmers Ltd. agreed to sell its Curragh coal mine in Queensland, Australia, to Coronado Coal Group for A$700 million.

The company expects to book a posttax profit of A$100 million on the sale, according to a Dec. 22 release. The deal also includes a value share mechanism linked to future metallurgical coal prices.

Wesfarmers will also receive 25% of Curragh's export coal revenue generated above a realized metallurgical coal price of US$145 per tonne, paid quarterly over the next two years.

The transaction is subject to a number of conditions precedent, including obtaining approval from the Foreign Investment Review Board.

Meanwhile, the strategic review of Wesfarmers's 40% interest in the Bengalla coal mine is ongoing, Wesfarmers Managing Director Rob Scott said.

In November 2016, Wesfarmers flagged a review of options for its resources business, including the sale of its coal assets in Australia.