Neither Yancoal or Rio Tinto would comment on speculation the Chinese miner was about to seal a deal to buy the Mount Thorley Warkworth (MTW) open cut coal mine.
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But that hasn’t stopped the rumour mill with one source suggesting to The Argus that Yancoal will take-over MTW in early December.
Locally Yancoal operate the Ashton underground and have approval for the Ashton South East open cut the company also has the Austar mine at Cessnock, Stratford Duralie near Gloucester and Moolarben near Mudgee.
Yancoal’s share price surged 40 per cent in October no doubt due in part to market speculation on its take-over of MTW.
Should Yancoal buy MTW it will have to find a solution to Wallaby Scrub Road which runs between Bulga and Warkworth.
Rio Tinto planned to close the road to allow for the expansion of the mine however the company hit a ‘roadblock’ when Singleton Council voted against the closure last year.
Since that time those opposed to the mine’s expansion have staged protests and sought legal advice which says closing the road may be somewhat problem for the mining company.
Much has been written about Glencore buying the remaining Hunter Valley Rio Tinto coal assets that also include Hunter Valley Operations but the ‘trader’ remains tight lipped and obviously only likely to sign a deal should the price be right.
Glencore, like many miners, does not expect this year’s 70 per cent hike in the price of thermal coal to be a continuing trend.
The Argus reported earlier this month of renewed interest in Anglo American’s Drayton South Project and other surrounding coal exploration licences.
Names mentioned,included Malabar Coal, who own the neighbouring Spur Hill Project.
Fairfax Media has reported Wesfamers may be selling their coal assets that include a 40 per cent stake in Bengalla mine near Muswellbrook.
Bengalla,a former Rio Tinto mine, was purchased last year, by the New Hope Group for $865 million.