Golding Contractors, a fully owned subsidiary of NRW Holdings, has agreed to acquire the mining services contract at Stanmore Resources’ South Walker Creek (SWC) coal mine site from HSE Mining.
Under the terms of the agreement, Golding Contractors will also buy the associated fleet and will retain the employees that HSE Mining has deployed at the Australian metallurgical coal mine site.
The transaction is valued at A$85m ($56.5m). Golding Contractors plans to fund the consideration, after deducting assumed employee liabilities of around A$15.3m ($10.17m), through NRW Holdings’ asset finance facilities.
As part of the deal, Golding Contractors will employ around 550 personnel of HSE Mining. The former will also operate the heavy mining equipment currently deployed at the South Walker Creek mine.
HSE Mining’s mining services contract to be transferred to Golding Contractors is estimated to generate annual revenue of around A$250m ($166.1m).
The contract is set to expire in August 2025 unless extended by mutual agreement between Golding Contractors and Stanmore Resources.
NRW Holdings managing director and CEO Jules Pemberton said: “I am delighted that NRW has been successful in acquiring the HSE Mining assets and inventory and securing the novation of the mining services contract with Stanmore at South Walker Creek.
“NRW, through our Golding and Action Drill & Blast businesses, has had a long association with Stanmore and I look forward to our teams continuing to deliver industry leading services.”
Located 35km west of Nebo in Queensland’s Bowen Basin, the South Walker Creek coal mine is an open-cut mine that has been operating since 1996.
Stanmore Resources became the operator of the South Walker Creek mine in 2022 by acquiring BHP’s 80% interest in BHP Mitsui Coal.
HSE Mining and Golding Contractors are finalising the transition arrangements, with financial close expected by the end of July 2024.
