South32’s Illawarra coal sale unconditional
All conditions precedent to the sale of Illawarra metallurgical coal to an entity owned by Golden Energy and Resources and M Resources have been satisfied, diversified miner South32 reported on Monday.
With the transaction now unconditional, the company expects it to complete around September 2.
CEO Graham Kerr said the sale was a “significant milestone” in the transformation of South32’s portfolio towards commodities critical to a low-carbon future. “The transaction will simplify our business, strengthen our balance sheet and reduce our capital intensity, unlocking capital to invest in our high-quality development projects in copper and zinc.”
He stated that South32’s strategy and approach to capital allocation was unchanged. “We remain focused on delivering our development projects and advancing our portfolio of earlier stage options to further increase our exposure to commodities critical to a low-carbon future and realise substantial value for our shareholders."
On completion, South32 will receive the upfront cash consideration of $1.05-billion less the $49-million deposit already paid.
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