Wesfarmers subsidiary Wesfarmers Resources has signed an agreement to acquire Mineral Development License 162 (MDL 162) from Peabody Energy unit Peabody Energy Budjero, for $70m.

Located between and adjacent to the Wesfarmers Resources’ Curragh and Curragh North mining leases, MDL 162 comprises 67 million tons (mt) of Coal Reserves1 within a total Coal Resource2 of 255mt.

The acquisition will boost Wesfarmers Resources’ total base of Coal Reserves at Curragh’s coal handling and preparation plants by approximately 29%.

Wesfarmers Resources managing director Stewart Butel said that the MDL 162 acquisition reflects Wesfarmers’ confidence in the longer-term outlook of Curragh’s export coal business.

In addition to extending Curragh’s mine life, the acquisition is expected provide future options to further optimize mine operations.
The company will carry out further work to convert MDL 162 to a mining lease.