NRW Holdings has sold the majority of the mining equipment owned by its subsidiary Golding Contractors to Boggabri Coal for $81 million.
Boggabri Coal contracted Golding for the Boggabri coal mine in New South Wales and has acquired the majority of Golding under a maintenance services and hire agreement.
Boggabru is a subsidiary of Japan-based Idemitsu Group.
According to NRW, the agreement will see Boggabri Coal acquire 38 major mobile mining assets from Golding with the transfer scheduled to be completed by the end of July.
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.
According to NRW chief executive officer and managing director Jules Pemberton, the sale agreement will reduce the company’s debt.
“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.”
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 with a mine life to 2033.
Idemitsu owns 80 per cent of Boggabri through its subsidiary Boggabri Coal, with Chugoku Electric Power Australia Resources and NS Bogagbri owning 10 per cent, respectively.
It is located approximately 17 kilometres north-east of Boggabri in New South Wales.