Tag Archives: Appin

South32 sells Illawarra Metallurgical Coal to entity owned by GEAR and M Resources

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South32 has entered into a binding agreement to sell Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources Pte Ltd (GEAR) and M Resources Pty Ltd for upfront and deferred cash consideration of $1.3 billion plus contingent price-linked consideration of up to $350 million.

The sale is expected to complete in the first half of South32’s 2025 financial year, subject to the satisfaction of certain conditions.

“This transaction will realise significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future,” Graham Kerr, South32 Chief Executive Officer, said. “It will streamline our portfolio, strengthen our balance sheet and unlock capital to invest in our high-quality development projects in copper and zinc. The transaction will also simplify our business and reduce our capital intensity.”

Illawarra Metallurgical Coal produces high-quality metallurgical coal, a key ingredient in the in the production of steel, which will be required in the steelmaking process until low-carbon steel becomes economically viable on a commercial scale.

Illawarra Metallurgical Coal has underground mines at Appin and Dendrobium, which produce premium-quality, hard coking coal for steelmaking. In South32’s 2023 financial year, it produced almost 5.5 Mt of this product.

GEAR and M Resources are established participants in the Australian metallurgical coal industry, with a strong commitment to environmental and safety standards, who are well positioned to continue Illawarra Metallurgical Coal’s contribution to the local steel industry and the Illawarra and Macarthur regions, according to South32.

“Our focus remains the safe and reliable operation of Illawarra Metallurgical Coal,” Kerr said. “Over the coming months we will work with the buyer, our workforce, the local community, government, customers and suppliers to support a successful transition of ownership.”

PIMS Mining gains more work in NSW coal sector with Appin and Maxwell agreements

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PIMS Group subsidiary, PIMS Mining, says it has been awarded a three-year fixed term contract – with a one-year extension option – with South32’s Illawarra Coal Holdings Pty Ltd, continuing to provide supplementary labour to its metallurgical coal mine, Appin, in New South Wales, Australia.

Appin mine is around 70 km south of Sydney and 37 km north of Wollongong, which produces premium-quality, hard coking coal for steelmaking, that is transported within Australia and around the world.

The scope of the contract includes providing supplementary labour for development, longwall, outbye and coal clearance processes. PIMS will require a variety of skilled personnel to support the increase to scope, from the previous contract.

South32’s Illawarra Metallurgical Coal operations has underground mines at Appin and Dendrobium, which produce premium-quality, hard coking coal for steelmaking.

PIMS Mining was also recently awarded Preferred Contractor status and received a Letter of Intent from Malabar Resources subsidiary Maxwell Ventures (Management) Pty Ltd to provide services for the Maxwell underground bord and pillar operation, in New South Wales.

Construction of the mine entry portals for the Whynot Seam bord and pillar operation is underway with the current project timeline requiring labour on site in January 2023 with a ramp up throughout the remainder of the March quarter.

The scope of the contract includes underground mining, employing the place change system and targeting run of mine production rates in the order of 900,000 t/y-1 Mt, PIMS said. During operation, PIMS Mining will work closely with the Maxwell leadership team to manage all aspects of the operations in the Whynot Seam, including planning, production of coal, maintenance and operation of all production equipment, conveyors, infrastructure and general mine construction, as well as ancillary activities.

PIMS Group Managing Director, Richard Mills, said: “PIMS Mining has extensive experience in underground coal mining, especially in safe, high productivity bord and pillar operations across Queensland and New South Wales and are excited to bring this experience to the Maxwell operation.”

Mastermyne outbye services contract extended at South32’s Illawarra coal mine

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Mastermyne Group says it has won a short-term extension to its existing contract with South32 at the Illawarra metallurgical coal operation in New South Wales, Australia.

The execution of the new contract will see the ASX-listed contractor continue to provide outbye services at the operation, part of the Appin colliery, until June 30, 2020. This extension closely aligns Mastermyne’s outbye services with the roadway development contract also operating in parallel at the mine, it said.

The scope of the agreement provides for a range of services managing outbye processes and supplementary labour in the Appin colliery longwall area.

The contract extension, expected to generate revenue of around A$17 million ($11.6 million) over the seven-month period, also allows the company to use this time to finalise an Enterprise Agreement with its workforce, it said.

South32 completed two longwall moves in the June 2019 quarter and plans to produce 7 Mt of metallurgical coal in the year ending June 30, 2020. This is up from 6.6 Mt in the previous 12-month period. More longwall moves have been scheduled for the current quarter and the March 2020 quarter as South32 looks to support the operation’s return to a three longwall configuration from the June 2020 quarter.

Mastermyne CEO, Tony Caruso, said: “We have worked closely with South32 for some time now, and putting this extension in place means both organisations are able to plan and get set for the longer term requirements at the mine.

“The company has provided contracting services to the Illawarra metallurgical coal operations for over 15 years now and we look forward to assisting South32 with their next stage of underground growth at the Appin colliery.”

South32 address Illawarra road safety with Linfox Logistics deal

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South32’s Illawarra Metallurgical Coal says it has contracted Linfox Logistics in a new six-year partnership that will improve road safety in the Illawarra of New South Wales, Australia.

In what South32 says is an Australian first, Linfox has custom-built the innovative “Lin-Double” truck to address the unique challenges of coal haulage in the region. The partnership will see 25 of these new trucks join the company’s fleet.

When in full use, the “Lin-Double” will reduce truck movements on public roads by almost 40,000 trips per year, according to South32, significantly improving local traffic flow and reducing the burden on public roads.

“The trucks feature industry-leading technology including crawler transmission and a speed limiter with GPS monitoring to safely navigate the steep descent down Mount Ousley [Road] while greatly reducing the risk of brake fade to increase driver and public safety,” South32 said.

Illawarra Metallurgical Coal has underground mines at Appin and Dendrobium producing high-quality metallurgical coal used for steelmaking. As a by-product, it also supplies small amounts of coal for energy. All of this is processed at its plants at West Cliff and Dendrobium, before being transported by road and rail down to Port Kembla in Wollongong.

Illawarra Metallurgical Coal, General Manager Mining Services, Andy Hyslop, said the investment was a demonstration of South32’s commitment to safety and innovation and would deliver benefits for both the community and the company.

“We are proud to be bringing safer trucks to the Illawarra while reducing the number of trucks on the road by around 20% every year,” he said.

The company concluded: “South32 values the communities that support its operations, and with state-of-the-art trucks and improved driver training and management systems, this partnership will contribute to the region’s sustainability and liveability for years to come.”

 

Mastermyne back on the road at South32’s Illawarra coal complex

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Australia and coal focused Mastermyne Group has been given the nod by South32 to restart roadway development services at the Illawarra coal complex in New South Wales.

The contract, initially awarded back in August 2017, is expected to deliver annual revenues of some $18 million, according to Mastermyne.

South32 requested roadway development be stopped in line with the temporary closure of the Appin mine, part of the Illawarra complex, last year.

Mastermyne said the additional revenue generated through this contract secures the upper end of the 2019 financial year (to end-June 2019) guidance range of A$230-250 million ($165-179 million).

Mastermyne CEO Tony Caruso said: “We are very pleased to have recommenced work on this project and further extend out working relationship with South32’s Illawarra metallurgical coal operations.”

The company already has a contract in place with South32 for the provision of services at the Appin mine. This is primarily process works and supplementary labour in the Appin longwall area.