February 3, 2023
Diverse Resources saving/ Resources circulation
Regarding the transfer of interests in Ensham Coal Mine in Australia
Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo, President and CEO: Shunichi Kito, hereinafter referred to as the “Company”) is the Ensham Coal Mine in Australia, in which Idemitsu Australia (Head Office: Brisbane, Queensland) holds an interest through Idemitsu Australia (Head Office: Brisbane, Queensland), in which Idemitsu has a 100% stake. All interests (85%) in Queensland) will be acquired by Sungela Pty Ltd *1 (Head office: Sydney, New South Wales, investment ratio (planned): Thungela (75%), Mayfair (12.5%), Audley (12.5%) )) and signed a sales contract today. We will proceed with specific procedures to complete the transfer.
In order to contribute to the realization of carbon neutrality society while fulfilling our responsibility to provide a stable supply of energy, Vision for 2030 is to become a "Your Reliable Partner for a Brighter Future."
Additionally, in Medium-term Management Plan (FY2023-FY2025) announced on November 16th of last year, we set a new vision for Vision for 2050 "Shaping Change." We aim to achieve sustainable growth by transforming our business portfolio by increasing capital efficiency by reducing fossil fuel assets and maximizing profits from existing businesses, and expanding new businesses that contribute to carbon neutrality.
Based on the above vision and policy, we have decided to promote the commercialization of Idemitsu Green Energy Pellets *2 as an alternative fuel to coal, and at the same time sell the Ensham Coal Mine as part of structural reform of our coal business.
- The main strategies for structural reform of the coal business are as follows.
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- ① Continuing stable supply and maximizing profits mainly for domestic customer by utilizing the highly competitive Boggabri Mine /li>
- ② Sale of Malinau mine in Indonesia (sold in March 2022) and Ensham mine in Australia
- ③ Developing new businesses using existing business infrastructure (renewable energy using mine sites, rare metal development using coal mining technology, etc.)
Due to the closure of Musselbrook Mine (in December 2022) and the transfer of Ensham Mine, the only coal mine in Australia in which our company has an interest is Boggabri Mine. As mentioned above, through the operation of this mine, we will fulfill our mission of stably supplying the energy we need today, while maximizing the use of the management Resources that we have cultivated over many years in Australia to develop renewable energy and rare metals whose demand is expected to grow in the future. , we will promote the transition to new businesses such as hydrogen and ammonia.
The transfer price consists of a one-time payment of A$340 million to be paid as of the transfer date and a conditional post-payment based on the price and quantity of coal sold from the Ensham mine in 2023 and 2024. Therefore, although the final transfer price will fluctuate, the impact of this transfer on our consolidated business results will be minimal.
- ■Ensham Mine Overview
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- 1. Location: Queensland, Australia
- 2. Opening year: 1993 Coal production
- 3. Interest composition (after transfer): Sungela Pty Ltd 85%, Bowen Investment (Australia) Pty Ltd 15%
- Four. Production volume performance: 4.3 million tons per year (2021 performance, 100% interest)
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A joint venture company established by Thungela, Mayfair, and Audley following this transfer.
- Thungela company profile
- The head office is in Johannesburg, South Africa. A company established by Anglo American, a major British Resources company, to spin off its thermal coal assets in South Africa into a new holding company as part of its business transformation. It operates seven thermal coal mines in South Africa. Listed on the Johannesburg Stock Exchange and the London Stock Exchange. https://www.thungela.com/
- Mayfair Company Overview
- The head office is in Brisbane, Australia. It invests in metal and natural Resources exploration projects, and has a diverse portfolio.
- Audley Company Profile
- The head office is in Brisbane, Australia. A member of Audley Capital, a Swiss-based hedge fund specializing in long-term investments in the mining and metals industries.
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A carbon-neutral, high-calorie fuel made by torrefying commonly used wood pellets. No modification of existing coal combustion equipment is required and it can be used as a substitute for coal.
Regarding news release
contact information
Idemitsu Kosan Co.,Ltd. Public Relations Department Public Relations Division