XSTRATA has been in the news this week with its shock announcement that its aggressive deal making has come to an end.
The company's chief executive Mick Davis revealed that the company's position as "deal junkies" was over, despite its rapid growth since it floated in 2002, having acquired 13 companies and shifting from being a AUD$3.6 billion business to one worth $44.2 billion.
Davis said the company would move to a phase of "organic growth".
But the company has now appointed Mallesons Stephen Jaques on a joint venture in respect of a proposed coal mine at Wandoan, a project potentially valued at $15 billion.
Xstrata and its Japanese joint venture partners, Itochu and Sumimoto, are considering a thermal coal mine at the Wandoan site (north west of Brisbane) with possible production levels ranging between 22 million tonnes per year up to 100 million tonnes per year, which would be greater than the 2009 export coal production for the entire Hunter Valley.
Lead Mallesons partner, Nicholas Pappas, said that as part of the Wandoan Coal project, Mallesons advised Xstrata on the possible developments of ports at Gladstone (Wiggins Island Coal Terminal) and Port Alma (Balaclava Island Coal Terminal).
“We’ve been helping Xstrata on a number of significant matters such as this, in line with its recent focus on organic development and securing infrastructure capacity,” Pappas said.
Pappas was assisted by senior associate Frank Coldwell on the joint venture agreement and senior associate Paul Schroder on the port developments.
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