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.

Woman's $27k property crime spree

Ipswich Police Station and Courthouse. Photo: David Nielsen / The Queensland Times

She targeted homes she knew had valuable items inside

REVEALED: Are dog owners being ripped off in Qld?

Revelations dog owners pay 10 times more than they should.

Revelations dog owners pay 10 times more than they should.

Premier steps in to ensure commuters get their trains back

FEEDBACK: Queensland Premier Annastacia Palaszczuk met locals in Rosewood recently where the importance of the rail line to Ipswich was made known to her.

Ipswich-Rosewood rail back this weekend

Local Partners

Chris Pratt fell asleep while babysitting

Chris Pratt revealed he fell asleep during babysitting duties

Kylie Minogue: I want to get married soon

Pop star Kylie Minogue has revealed she hopes to get married soon

Amanda Seyfried lets slip the sex of her baby

Amanda Seyfried has suggested the sex of her baby

Meet the Brisbane breakfast radio king's replacement

Craig Zonca ABC Radio

ABC announces Craig Zonca as the replacement for Spencer Howson

How predictable are your Netflix habits?

Stranger Things is taking the world by storm as a new-age nostalgic Sci-Fi Thriller

The new entertainment binging pattern

Kanye West is on the mend now he's back from hospital

Kanye West is more relaxed since returning home from hospital

Ipswich City Properties asset portfolio retains its value

Ipswich City Council Administration Building, South Street, Ipswich. Photo: Claudia Baxter / The Queensland Times

New website launched by Ipswich City Council

INSIDE STORY: The highlights of your $150 million CBD

GRAND PLAN: The highlights of the Ipswich CBD redevelopment and where they will be located.

Work on city heart's radical transformation to begin next year

VOTE IN OUR POLL: Sand mine opponents face serious dilemma

Public meeting for the proposed sand mine at Maroochydore last week.

Coast MP calls on Minister to stop KRA proposal with stroke of a pen

Developer's grand new multi-million dollar estate

NEW ESTATE: This is the only plan revealed by the property developer's new Billabongs Estate in Agnes Water.

DEVELOPER given the go ahead for a massive estate with 149 homes.

Couple's desperate $550K price drop to sell Gladstone home

Brian Headley and Kirstene Staib are selling their Kin Kora mansion for $750,000.

TELL tale sign of Gladstone's property market.

Ready to SELL your property?

Post Your Ad Here!