Last week New Hope Corporation, owners of the Bengalla open cut mine near Muswellbrook, announced it bought a 15% stake in Malabar Resources Ltd for A$94.4 million.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Malabar Resources, an unlisted public company, owns the Maxwell Underground mine near Jerrys Plains that was approved in December 2020.
The underground mine is located on land formerly owned by Anglo American who unsuccessfully tried for a number of years to develop an open cut mine known as the Drayton South Project.
Drayton South was strongly opposed by the Hunter Thoroughbred Breeders Association as the mine would have been located adjacent to two of the leading studs Coolmore and Godolphin (Woodlands).
Anglo American exited the Hunter Valley coal industry following the closure of its Drayton open cut mine in late 2016 and the eventual sale of their local assets to Malabar Resources in 2018.
In a company statement from Malabar Resources it said "Malabar looks forward to working collaboratively with New Hope and all of our shareholders in implementing our plans to develop our diversified portfolio of resources assets."
Construction on the Maxwell Underground Mine, which is approved to operate for 26 years, began in May 2022, with first coal expected to be produced in early 2023.
The mine will produce high quality coal, with at least 75 per cent of the coal capable of being used for steel making. Around 250 jobs will be created during the construction phase of the Maxwell Underground Mine.
A further 350 operational jobs will be created once the mine is operational, delivering more than $55 million in wages into the local Hunter Valley economy each year.
New Hope in their statement to the Australian Stock Exchange said the investment aligned with its strategy to spend surplus cash on coal assets that were low on cost with long life approvals.
They also spoke about the agricultural assets and future development of tan approved 25MW solar farm.
Malabar Resources, is currently seeking a minor modification to the Maxwell Underground Mine including re-orientation of longwall panels to better align to the geotechnical conditions.
And commencing production in the Woodlands Hill seam initially with 145m wide longwall panels, and then increasing the longwall to 300m wide rather than commencing with a 300m wide longwall at the outset.
Louise Nichols
From cattle to coal. Once a specialist agriculture writer today its about community, in particular, the Upper Hunter. I have lived and worked in the region for more than 30 years. Land use issues and the future direction of our region. But you cannot take ag out of the picture - our food and how we grow it is the basis of all life. Covering the Hunter and Mid North Coast rural issues is now part of my role with ACM.
From cattle to coal. Once a specialist agriculture writer today its about community, in particular, the Upper Hunter. I have lived and worked in the region for more than 30 years. Land use issues and the future direction of our region. But you cannot take ag out of the picture - our food and how we grow it is the basis of all life. Covering the Hunter and Mid North Coast rural issues is now part of my role with ACM.
