NRW Holdings has secured an agreement to sell 38 mobile mining assets owned by subsidiary Golding Contractors to Boggabri Coal for $81 million.
Boggabri Coal is a subsidiary of Idemitsu Group, which contracted Golding through a maintenance services and hire agreement for the Boggabri coal mine in New South Wales.
Under the agreement, Boggabri Coal has acquired the majority of Golding’s major mining equipment for $81 million.
The mining services company will allocate $64 million of the funds to its asset financing debt to reduce the company’s debt from $115 million as of June 30, 2021 to $34 million.
NRW chief executive officer and managing director Jules Pemberton said the sale was advantageous.
“The option for Boggabri Coal Operations (BCO) to acquire all or part of the associated Mining fleet was identified at the time of the acquisition of BGC Contracting,” Pemberton said.
“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.”
NRW stated Golding will remain at the Boggabri coal mine to perform maintenance services on site for the 38 assets, along with other major mining equipment.
The Boggabri coking coal mine is an open cut coal operation that has been in operation since 2006. Around 600 employees and contractors work at the site with coal transported to the Port of Newcastle for exports.
Boggabri produces up to 7 million tonnes per annum of coal and has a mine life to 2033.
Idemitsu owns 80 per cent of Boggabri through subsidiary Boggabri coal, with Chugoku Electric Power Australia Resources and NS Bogagbri owning 10 per cent each, respectively.
It is located approximately 17 kilometres north-east of Boggabri in the Gunnedah Basin.