COCKATOO Coal has agreed to sell its 30 per cent stake in Hume Coal Pty Ltd, making Korean steel-maker POSCO the sole owner.
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Cockatoo Coal managing director, Andrew Lawson, said it would now focus on its existing mine at Baralaba, west of Rockhampton, Queensland.
"We wish Posco Australia well with its endeavours at Hume and look forward to continuing our strong relationship with the group," he said.
Posco initially acquired 100 per cent of the project from Anglo American in 2010 and then entered into a share-swap arrangement with Cockatoo Coal which acquired a 30 per cent interest.
The sale, announced last Friday, included a cash payment of $9.74m and cancellation of 134.8 million shares in Cockatoo Coal Limited.
Posco Australia's Soo-Cheol Shin said the Hume Coal Project was an important part of its Australian investment portfolio.
"The current team has done an excellent job and we intend to retain all staff currently employed on the Project and progress through exploration, so we can understand the environmental and economic feasibility of developing a mine in the area," he said. "Exploration and monitoring work already completed indicates the potential for an underground mine that would employ up to 400 people and provide significant additional economic benefits to the region and royalties to the NSW Government."
Southern Highland Coal Action Group convenor, Peter Martin, said he hoped POSCO would now wind up the project.
"Hume Coal is facing very significant obstacles especially the groundwater issues that will be difficult if not impossible to overcome," he said.
"With POSCO in control, one hopes common sense will prevail."
"In addition, landowners in the Hume licence area are fighting tooth and nail to prevent access to their properties for exploratory drilling."
Soo-Cheol Shin said: "We recognise there are concerns about the potential environmental impacts, including groundwater and we have already invested significant resources to model and minimise any potential impacts that may result from an underground mine."