Tag Archives: Dendrobium

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

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

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.”

South32 address Illawarra road safety with Linfox Logistics deal

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.”