Sharechat Logo

Bathurst to pay $600,000 for Canterbury Coal assets, agrees to 3-year supply contract

Friday 16th August 2013

Text too small?

Bathurst Resources, the Wellington-based miner, will pay as much as $600,000 for the assets of Canterbury Coal near Christchurch to expand its New Zealand business.

The mining company has been operating the open cast mine near Coalgate as part of due diligence and during this time has won a three-year contract to supply up to 55,000 tonnes of coal a year to a local dairy processing plant, it said in a statement.

The mine will initially produce up to 50,000 tonnes a year and is forecast to increase that to 100,000 tonnes over the next few years to meet dairy and industrial demand in the Canterbury region, Bathurst said. The mine produces thermal coal which is low in sulphur and ash and is in high demand by the local dairy and food processing industries, the company said.

"This acquisition and new supply contract further underpin the growth of our domestic sales," Bathurst managing director Hamish Bohannan said. "Coal demand in the Canterbury area is set to grow to over 150,000 tonnes per annum in the short term. The proximity of the mine to these markets gives us a distinct freight advantage over our competitors to target this growth potential."

Recent drilling at Canterbury Coal has identified a coal resource of 3.3 million tonnes, Bathurst said.

To support Canterbury Coal, Bathurst is in talks to take a half stake in the Kenroll Coal Yard in Rolleston, which it would rename Bathurst Industrial Coal. This would provide a consented coal yard, plant and equipment, weighbridge and screening facilities, the company said.

The purchase of Canterbury Coal's assets is conditional on several consents. Payment is for an initial $450,000 and a further $150,000 a year after settlement, the company said.

Canterbury Coal is owned Akaroa-based by Ken Shearer and Jennifer Jane Shearer, according to Company Office records.

Bathurst's shares were unchanged at 21 cents yesterday, and have gained 11 percent this year.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Supreme Court backs Bathurst in climate change ruling, Chief Justice disagrees
Bathurst seeks further $6M from Aussie shareholders only
Bathurst trading halt extended to Wednesday morning for capital raising
Bathurst seeks capital as resource consents loom
Green light imminent for Bathurst's Escarpment mine
Bathurst plans to oppose Forest and Bird Court of Appeal application on Sullivan decision
High Court clears another hurdle for Bathurst Resources
Bathurst jumps another hurdle on path to mining Denniston Plateau
Bathurst process inches forward
Bathurst Resources to reincorporate as NZ company, eyes NZ equity raising

IRG See IRG research reports