HopgoodGanim Lawyers has advised Australian coal explorer and developer Northern Energy Corporation on a life of mine coal off take agreement with Chinese steel making group Xinyang Iron and Steel Group Company Limited.
The off take agreement gives Xinyang Group access to 65 percent of the off take from the planned Colton mine and any additional developments at Maryborough.
This agreement will deliver Northern Energy approximately $700 million in sales revenue over a 10 year period at current coal prices and at the initial planned production rate.
HopgoodGanim also advised on the placement of 16.315 million Northern Energy shares to Xinyang Group to raise $23 million.
According to HopgoodGanim Partner Martin Klapper, who led the team advising on the agreement, this deal is a significant step forward for Northern Energy in building a long term relationship with the Chinese steel industry and in developing its high-quality coking coal resources.
“China represents an increasingly important market for coal, and indeed for the entire resources sector in Queensland. We’re seeing more and more of our clients entering into agreements with Chinese resources companies - it’s proving to be an area of real growth.”
Contact:
Esther Cohen, Communications Advisor
Tel: 07 3024 0192
