(EnergyAsia, April 12 2012, Thursday) — Australia’s 
Aquila Resources Limited said its wholly owned subsidiary, IP Coal Pty Ltd, has agreed to sell its 50% joint venture interest in the Isaac Plains coal mine to Ocean Coal Mining Pty Ltd, a wholly owned subsidiary of Japan’s Sumitomo Corp for A$430 million. (US$1=A$0.96).

Aquila said Sumitomo offered “the most compelling value proposition” among competing offers for its stake.


The sale will have to clear shareholder and regulatory hurdles: Vale Australia (IP) Pty Limited, a subsidiary of Brazil’s Vale SA, the mine’s other shareholder, not exercising its 60 day pre-emptive right under their joint venture agreement, and Sumitomo receiving approval from the Australian Foreign Investment Review Board and approvals under the Queensland Mineral Resources Act.

Aquila, 15% owned by China’s largest steel company, Baoshan Iron & Steel, said the sale will enable it to raise funds to develop its other mining assets.

Isaac Plains is an operating open-cut coal mine located east of Moranbah in the Bowen Basin in central Queensland state. The mine has the capacity to produce 2.8 million tonnes/year of metallurgical and thermal coal.