Bathurst finalises New Zealand mine acquisition

OREANDA-NEWS. New Zealand-based coal producer Bathurst Resources has finalised the acquisition of all of the remaining shares in New Brighton Collieries, potentially giving it access to high-quality sub-bituminous coal reserves near to its existing Takitimu mine in Southland.

Australia- and New Zealand-listed Bathurst had agreed to payment terms of NZ\$13.25mn (\$9.7mn) by 31 December. But this has been amended, with the balance of the purchase price to be a continuing deferred consideration of 5pc of gross sales revenue on all coal produced by the company in the Ohai area.

The acquisition will provide expansion opportunities, as well as underpin Bathurst's long-term supply strategy to New Zealand's South Island dairy industry, the firm said. Bathurst produced 208,534t of coal in the six months ending 31 December 2014 with sales totalling 181,811t.