Posted on 30 May 2024
Australian steel manufacturer BlueScope Steel has waived its pre-emptive right in respect of the sale of South 32's Illawarra Metallurgical Coal (IMC) to an entity owned by Golden Energy and Resources (GEAR) and M Resources, Kallanish notes.
South 32 says in a statement that the transaction remains on track to be completed in the first half of the financial year ending June 2025 (FY25), subject to the satisfaction of the remaining conditions, including Foreign Investment Review Board approval.
In a separate statement, BlueScope says it has supported the sale of IMC to an entity owned by GEAR and M Resources with an improved supply term,
Under a coal supply agreement, IMC supplies BlueScope’s Port Kembla Steelworks with a blend of metallurgical coal from its Appin and Dendrobium mines located in the Illawarra (Illawarra Coal Blend).
“BlueScope has had strong engagement with GEAR and M Resources and looks forward to working with them as the new owners of IMC and as a long-term supplier to the Port Kembla Steelworks,” the firm says.
As a sign of their commitment to the relationship, GEAR and M Resources have agreed to a number of improvements to the supply agreement, consistent with GEAR and M Resources’ plans and aligned to BlueScope’s long-term objectives, including a one-year extension of the contract (to expire in 2033).
This is along with the commitment to undertake a detailed review process to support a potential extension of the supply of the Illawarra Coal Blend beyond 2033.
Source:Kallanish
