Oct 31, 2016

Callide coal sale deal confirmed

Callide coal sale deal confirmed

CS Energy has welcomed confirmation that Anglo American’s sale of the Callide Mine in central Queensland to Batchfire Resources was completed today, saying it provides certainty for its nearby power operations.

The Callide open-cut thermal coal mine and associated processing infrastructure produced 7.9Mt of coal in 2015 (and 5.5Mt in the first nine months of 2016), the majority of which was sold to the two adjacent power stations under long-term contracts.

CS Energy owns and operates the Callide B Power Station and has a 50 percent interest in the Callide C Power Station near Biloela.

It said Callide Mine was the sole, economic source of coal for the operations.

CS Energy chief executive officer Martin Moore said the announcement today that the sale deal had been completed provided increased certainty for power station employees and the local Biloela community.

“CS Energy has negotiated with Batchfire amended terms to the current Coal Supply Agreements (CSAs) for the supply of coal to the Callide Power Station,” he said.

Anglo American said the terms of its transaction with Batchfire Resources remained confidential.