Money

Sumitomo buys stake in Isaac Plains

The coal stockpile at the Isaac Plains Mine, near Moranbah.
The coal stockpile at the Isaac Plains Mine, near Moranbah. Contributed

JAPANESE giant Sumitomo has swung in to give Aquila Resources $430 million for its share of the Isaac Plains mine near Moranbah.

In the same breath, it has taken a 50% stake in most of Aquila's exploration sites across the state.

These purchases are part of a greater plan for the Japanese firm - which operates in 65 countries - to pick up projects in Central Queensland.

The deal was announced to the ASX on Tuesday morning.

Although subject to conditions, the parallel deal means Sumitomo will be able to cherry-pick which exploration sites it wants a significant share in.

Once formalised, these partnerships will allow Aquila to funnel its money towards a sprawling iron ore project in Western Australia while creating a powerful joint venture to develop more sites in the Bowen Basin.

Aquila will no longer hold any stake in Isaac Plains open-cut mine - it will now be jointly owned by Sumitomo and Brazilian miner Vale.

However that deal will still hinge on Vale giving its permission for Sumitomo to buy, and a further thumbs-up from the Foreign Investment Review Board.

According to Aquila's ASX announcement: "The sale (of Isaac Plains) follows a number of approaches with respect to Aquila's interest in Isaac Plains, with the Sumitomo offer ultimately providing the most compelling value proposition."

It was a busy morning for the Perth-based Aquila.

On top of its other news, it reaffirmed a plan to offload the Washpool Hard Coking Coal project near Blackwater, likely to fall into the hands of an Indian consortium.

Sumitomo for its part is expected to keep quiet on its buying spree, with a spokesman confirming the deals but declining to elaborate.

The company already has a stake in a wide selection of Queensland projects, some of them particularly high profile.

It has four joint ventures with Xstrata Coal including Oaky Creek, Newlands, Rolleston and a foundation piece of the Wandoan project.

Sumitomo also owns part of Hail Creek with Rio Tinto.

The company spokesman said investing in coal was "a core strategy of our company".

"It's just natural for us to be targeting this area (the Bowen Basin)."

Topics:  isaac plains mine, mining, moranbah


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Priest makes big move to Ipswich

WELCOME: The Lacey family have moved from London to Springfield so Charlie Lacey can take up the role of priest at Springfield Anglican Church. He is pictured with his wife Tisa, daughter Isabelle and son Caleb.

Springfield Anglican welcomes new priest.

Three doctors join bustling health centre

Priority Health Medical Central at Orion has welcomed three new doctors. Dr Lincoln Dinh, Dr Tricia Clark and Dr Nga Phan.

More doctors to meet the demand.

"F*** OFF, We will race"- Motorbike race push flares up

DAMAGE: Vandals have struck over the proposed Hinterland TT race.

Coast motorbike race under clouds as vandals strike

Latest deals and offers

Fourth mine was in breach of coal dust limits

The Oaky North coal mine is the fourth mine known to have been told it had breached dust limits this year.

Priest makes big move to Ipswich

WELCOME: The Lacey family have moved from London to Springfield so Charlie Lacey can take up the role of priest at Springfield Anglican Church. He is pictured with his wife Tisa, daughter Isabelle and son Caleb.

Springfield Anglican welcomes new priest.

Three doctors join bustling health centre

Priority Health Medical Central at Orion has welcomed three new doctors. Dr Lincoln Dinh, Dr Tricia Clark and Dr Nga Phan.

More doctors to meet the demand.

"F*** OFF, We will race"- Motorbike race push flares up

DAMAGE: Vandals have struck over the proposed Hinterland TT race.

Coast motorbike race under clouds as vandals strike

Giant snake found trying to open family fridge

Andrew Smedley from Andrew's SNAKE Removal found this huge python on top of a fridge.

It's one night they won't forget in a hurry

Teen, 15, punched in the face in schoolyard

Police generic, crime scene.  Photo Tessa Mapstone / South Burnett Times

Teen injured in school incident

Dr Karl, Barnaby Joyce and 'how to unf*** the planet'

Dr Karl will be at Splendour in the Grass 2016.

Controversy and laughs at Splendour in the Grass panels and forums

The Bachelor: Vinteaea tells why she had to walk out

Vintaea Carlos was one of 22 "bachelorettes" looking for love on the fourth season of The Bachelor.

Queensland beauty leaves Richie at rose ceremony.

Amber Heard claims Johnny Depp is stalling divorce

Amber Heard claims Johnny Depp is delaying their divorce

The Bachelor host: this year's season is a cracker

The Bachelor host Osher Gunsberg.

GUNSBERG says tonight will be "the best night of TV of the year".

Kerri-Anne Kennerley to Sonia Kruger: "Stay brave"

She said her television peer should "stay brave"

Swimwear designer looking for love on The Bachelor

Noni Janur on her first day of filming.

The 25-year-old is one of 22 women vying for Richie Strahan’s heart

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

The climb is slow but property on the way up

Michael Matusik, director of Matusik Property Insights.Photo Allan Reinikka / The Morning Bulletin

The improvement would be mild when compared to past cycles