Most of the major mining equipment used at the Boggabri coal mine in New South Wales, Australia, is to be sold to Boggabri Coal Operations (BCO), part of the Idemitsu Group, following the exercise of an option between BCO and Golding Contractors, a subsidiary of NRW Holdings.

The transaction for the fleet, which includes 38 major mobile mining assets, has a target completion date of the end of July 2021.

Golding will continue to perform maintenance services on site across these, and another 50 (approximately) pieces of major mining equipment, engaging a workforce of over 150 personnel on site, NRW said.

The equipment will be sold for circa-A$81 million ($61 million) of which circa-A$64 million will pay down asset financing debt, NRW said.

NRW’s CEO and Managing Director, Jules Pemberton, said: “The option for BCO to acquire all or part of the associated mining fleet was identified at the time of the acquisition of BGC Contracting. This transaction will reduce debt and increase return on capital employed.

“We look forward to continuing to support BCO to ensure we are best placed to continue to provide our services beyond the current contract completion date of December 2022.”