to the Singapore Stock Exchange on Tuesday. The remaining 20% stake in the joint venture is owned by Japan’s Mitsui.
“With this successful completion, GEAR will become one of the largest global producers of metallurgical coal,” Fuganto Widjaja, executive chairman of Golden Energy and Resources, said in the company’s statement. GEAR’s Australian-listed unit, Stanmore Resources, said it will fund the acquisition through a combination of cash and debt.
BHP Mitsui Coal has three coal mines in the Bowen Basin in Queensland, Australia. The company said it had combined marketable metallurgical coal reserves of 180 metric tonnes and revenue of $989 million for the year ended September 30, 2021. Metallurgical coal is the high-grade coking coal used in the production of steel.
“Metallurgical and PCI coal prices remain at historically high levels and Stanmore will benefit from those prices with the addition of production of approximately 10 million tonnes of marketable metallurgical quality coal,” Marcelo Matos, CEO of Stanmore Resources said.from research firm Wood Mackenzie, the Russia-Ukraine crisis has sent prices soaring on supply chain disruptions and counter-party risk due to sanctions.