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Pembroke Plans Project Finance Talks for Australia Coal Mine

29 Jun 2018 4:02 am
 
   By Rhiannon Hoyle 
 

SYDNEY--Private-equity backed ​Pembroke Resources ​expects to begin a formal process to raise project finance for its Olive Downs steelmaking-coal development in Australia within the next few months, Chief Executive Barry Tudor said in an interview.

The first phase of the project, to build a 6 million metric ton a year mine producing metallurgical coal by 2020, is expected to cost between 350 million Australian dollars (US$258 million) and A$400 million. Pembroke plans to seek project finance for "a significant portion" of that cost, possibly around 50%, Mr. Tudor said.

The company would also consider bringing in a joint venture partner for the project, located in the Bowen Basin of Queensland state, and "we always have equity funding as a backstop," he said on Friday.

Pembroke, backed by Denham Capital, purchased the Olive Downs assets in 2016 from Peabody Energy Corp. and Citic Resources Holdings Ltd. for A$120 million plus a royalty on future production.
 

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
 

(END) Dow Jones Newswires

June 29, 2018 00:02 ET (04:02 GMT)

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