MacArthur Coal (MCC)

Shares / Stock Code

MCC

Stock Exchange / Sharemarket

ax

Macarthur Coal (MCC) is a coal explorer and producer. The Company supplies coal to Asian, European and Brazilian markets. The Company operates three mines Coppabella (73.3% interest), Moorvale (73.3% interest) and Middlemount (74.66% interest) based in Queensland’s Bowen Basin. Paway Ltd is a joint venture patner of MCC in the Middlemount Mine project and owns the remaining 25.34% interest in the Middlemount project. Macarthur Coal listed on the Australian Stock Exchange on 5 July, 2001. The Company is headquartered in Brisbane, directly employing circa 295 staff, with over 100 people employed through contracts. The key product of the Company is low volatile pulverized coal injection coal (PCI coal) which is used in the steel production. The company’s products also include thermal and coking coal. In January 15, 2008, Macarthur Coal acquired Custom Mining Limited and an interest in the Middlemount Mine Project. The Middlemount Mine project holds mineral development licence (MDL) 282, which spans over an area of 1,800 hectare. Macarthur Coal retains an extensive portfolio of prospective exploration tenement holdings which will facilitate the Company in the development of further coal mines. MCC has several unincorporated joint ventures for its mines and exploration tenements (excluding the Middlemount Mine project which is incorporated JV). The Company’s JV partners include: CITIC Resources Australia Pty Ltd, Marubeni Corporation, Sojitz Corporation, JFE Shoji Trade Corporation, and NS Trading Co Ltd.

Macarthur Coal offers excellence services to its joint venture partners for the management of the mines and exploration program. Macarthur Coal is the sole operator of Coppabella Mine, while the mining operations at Moovale Mine and Middlemount are carried out by contractors.

MacArthur Coal History

Macarthur Coal was created in February 2001. It became floated on the Australian Stock Exchange in July 2001, raising $39M. In December 2002 Moorvale Mining Lease was granted and mining operations started. In January 2003, Dragline production was started at Coppabella Mine, with first coal mined from Moorvale in March 2003. In December 2003, the Company acquired an additional 23.3% share in Coppabella Mine. On 11th December, 2003, Coppabella and Moorvale JVs were incorporated. During the Financial Year 2006, the total production of MCC amounted to 7,000,000 tonnes. The Company acquired the mining assets of Peter Champion on December 1, 2006. In January 2007, Nicole Hollows was appointed as a CEO of the Company. In October 2007, the Moorvale CHPP was upgraded to 600tph. Its Burdekin pipeline was commissioned in October 2007. In January 2008, Macarthur Coal acquired 70% shares of the Middlemount project. In February 2008, the Company sold its 19.61% interest in Monto Coal 2 Pty. In June 2008, the Company acquired the 100% ownership of the Coppabella.