The deal makes the firm's client one of the state's biggest mining companies
Norton Rose Fulbright (NRF) has advised Queensland mining business Stanmore Resources Limited as it acquired Dampier Coal (Queensland) Pty Ltd’s shares for a consideration of up to US$1.35bn.
In the process, Stanmore picks up an 80% stake in BHP Mitsui Coal (BMC).
“The acquisition is transformational for Stanmore, making it one of the largest mining companies in Queensland and one of Australia’s biggest metallurgical coal businesses,” NRF said. “BMC’s assets are in close proximity to Stanmore’s existing operating assets and there is potential for the combined group to benefit from shared infrastructure, corporate functions and coal blending opportunities.”
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Under the terms of the deal, the purchase will be funded through a cash payment of US$1.2bn, with a potential payment of up to US$150m to follow in two years. Stanmore has proposed to settle the acquisition through a combination of debt and equity.
The completion of the transaction is subject to satisfactory conditions precedent and regulatory approvals. With the acquisition, BMC’s operations will be integrated into Stanmore’s.
The projects managed by BMC include the South Walker Creek and Poitrel mines in Bowen Basin and the undeveloped Wards Well coal project.
“We are delighted to support Stanmore on this transformational transaction for the Australian coal industry. As we are seeing with other industries such as real estate, M&A deal activity is lifting in the Australian resources industry and we expect this will only continue in 2022,” NRF co-lead partner Adam Edelman said.
Edelman led a multijurisdictional team alongside David Jewkes and Keira Brennan. They received support from partners Alen Pazin, Claire Forster and Adam Smith; special counsel Herman Yip; senior associate Ellen Whittred; associates Mauricio Da Rocha, Kellie Hayman, Morgan Woodland, Laura Martin and Amelia Martin; and lawyers Chris Minus and Ellen Pen.
The team consisted of members of the corporate, projects, banking and finance, regulatory and tax practice groups. The firm said that the team leveraged its deep mining and M&A expertise across these areas.