Deals this week: Sedgman, Merdeka, Allegiance Coal

9 November 2018 (Last Updated November 19th, 2018 12:09)

CIMIC Group subsidiary Sedgman has secured two contracts worth A$100m ($71.99m) to operate and maintain coal handling and preparation plants (CHPPs) in Australia.

CIMIC Group subsidiary Sedgman has secured two contracts worth A$100m ($71.99m) to operate and maintain coal handling and preparation plants (CHPPs) in Australia.

Mach Energy has engaged Sedgman for its Mount Pleasant site at Muswellbrook for a period of three years under an A$75m ($53.99m) contract.

The second contract is worth A$25m ($17.99m) and has been received from QCoal for its Byerwen CHPP site at Glenden, Queensland, for a period of one year.

Sedgman provides mineral processing services, while MACH Energy develops and operates economical and efficient energy sources. Qcoal is engaged in coal exploration and mining.

All the companies involved in the transaction are based in Australia.

Merdeka Copper Gold has agreed to acquire a 66.6% stake in the Pani joint venture (JV) for $55m from Lion Selection Group’s existing partner.

Lion expects the technical, financial, and operational expertise of Merdeka to help in developing the Pani gold project, the JV’s prime project.

“Japan-based Itochu has agreed to invest in TCL over two stages for acquiring up to 50% of the issued share capital in TCL, as part of the agreement.”

Based in Indonesia, Merdeka developed and is currently operating the Tujuh Bukit oxide heap leach project in East Java. Australia-based Lion Selection Group is an investment company focused on investing in small and medium enterprises.

Allegiance Coal has signed a binding agreement with Itochu to form the Telkwa Met Coal JV for developing the Tenas metallurgical coal project in north-west British Columbia, Canada.

Allegiance subsidiary Telkwa Coal (TCL) fully owns the project.

Japan-based Itochu has agreed to invest in TCL over two stages for acquiring up to 50% of the issued share capital in TCL, as part of the agreement. TCL will continue to operate the Tenas mine under the JV, while Itochu will be responsible for the marketing, sale and delivery of coal from the site.

Based in Australia, Allegiance Coal is engaged in advancing the Tenas metallurgical coal mine into production, while Itochu focuses on commodity trading.

SMS group has secured the front-end engineering and design (FEED) contract for TNG’s Mount Peake vanadium-titanium-iron project in the Northern Territory, Australia.

In addition, SMS group will undertake all project development components such as concentrator, the TIVAN processing plant, and all associated plant and equipment.

Based in Australia, TNG is engaged in mineral exploration and development, while SMS group is a metallurgical engineering firm based in Germany.