Under the terms of the agreement, AQC will acquire Anglo American’s interest in Dartbrook for up to A$50 million (approximately $36 million), in a deal that consists of an upfront cash payment of A$25 million and the grant of a royalty equal to A$3 for each metric ton (mt) of coal produced by the operation in the future and A$0.25 for each mt of coal sourced from other sites and processed using Dartbrook’s processing infrastructure.

The transaction remains subject to several conditions, including the waiver of pre-emption rights by Anglo American’s joint venture partner, Marubeni Coal Pty Ltd. and the receipt of local and federal government consents for the transfer of the mining and exploration rights related to the operation. The transaction is expected to be complete by mid-2016.

Dartbrook consists of an underground thermal coal mine and associated processing infrastructure that has been on care and maintenance since 2006.