Dartbrook Transaction

Key transaction features

Australian Pacific Coal Limited entered into various agreements in 2016 for its acquisition of the Dartbrook mine. This acquisition has not yet completed. On completion, these are the key features of the transaction:
  • Acquisition of 100% of the Dartbrook Joint Venture
  • Reinstatement of the underground mine
  • Application for the proposed open cut mine
  • Provision of Environmental Bonds/Financial Assurance

Key investor highlights

  • Dartbrook provides a rare entry opportunity into the tightly held Tier 1 thermal coal assets of the Hunter Valley.
  • The initial objective is to recommence underground mining at Dartbrook.
  • This high quality Newcastle benchmark coal is well placed in the seaborne export market.
  • There are no ‘take-or-pay’ rail and port contracts currently in place that require funding during development.
  • Existing rail and port services are under-utilised and have sufficient excess capacity to meet the Company’s anticipated rail and port requirements when in production.
  • This acquisition of Dartbrook will create significant local direct and indirect employment during the development and production phases.
  • The short to medium term objective for Dartbrook is to shift its focus to a low strip ratio open cut mine with approval sought for an operation commencing at 5 million tonnes per annum (‘mtpa’).