Corrs Chambers Westgarth has advised Yancoal Australia on its acquisition of thermal coal exploration and production assets in Queensland for $202.5 million.
The Hong Kong listed company said on 2 August it was buying two companies registered in Brisbane, Syntech Resources and Syntech Holdings II, from GS Power Holdings. The companies operate a thermal coal mine in Queensland's Surat Basin, Yanzhou Coal said.
Syntech currently has JORC compliance coal resources of 723 million and reserves of 440 million tonnes.
The acquisition was made through the purchase of 100 per cent of the equity interests in Syntech Holdings Pty Ltd and Syntech Holdings II Pty Ltd by a Yancoal Australia.
The Corrs team was led by partners Andrew Lumsden and Bruce Adkins, and supported by senior associates David Sim and Franka Cheung and lawyers Maggie Wong and Jennifer Leung.
Corrs partner Andrew Lumsden said: “We were excited to play a key role in this significant strategic acquisition by our long term and valued client Yancoal.”
Corrs said the acquisition is pivotal to the further development and productivity of the Cameby Downs Mine, which commenced mining in 2010 and currently has a production capacity of 2 million tonnes of raw coal and 1.4 million tonnes of commercial coal per annum.
Yanzhou Coal said in a recent statement that it plans to increase the annual production capacity of the mine to 16 million tonnes of raw coal and 11.4 million tonnes of commercial coal per annum.
The Cameby Downs Mine currently exports its coal through the coal port terminal in Brisbane and has plans to use the Wiggins Island Coal Export Terminal at Gladstone and Surat Basin Rail infrastructure once developed.
Corrs previously advised Yanzhou Coal on its A$3.5 billion acquisition of Felix Resources Limited so that it became the first Chinese state-owned enterprise to acquire 100 per cent of an Australian listed company.
Corrs also advised Yancoal on its sale of interests in the Minerva Coal Joint Venture located near Queensland’s Bowen Basin and the acquisition of interests in Ashton Coal Joint Venture located near Singleton in New South Wales.