South32 Ltd. has completed the acquisition of a 50% interest in the Eagle Downs metallurgical coal project in Queensland’s Bowen Basin. South32 has also assumed operatorship with the other 50% interest in the project held by Aquila Resources Pty Ltd. (Aquila), a subsidiary of BaoWu.
The consideration comprises an upfront payment of approximately US$106 million, a deferred payment of US$27 million due three years after completion, and a coal price linked production royalty that will also be payable and is capped at US$80 million. The upfront payment has been funded from the group’s cash reserves.
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