The completion of the sale is subject to receipt of several regulatory approvals.
The sale was initiated after Cockatoo Coal and its subsidiaries Surat Coal and Cockatoo Coal reached an agreement between Mitsui Coal Holdings (MCH) and its subsidiaries MCH Surat Basin Investment (MSBI) and Mitsui Moura Investment (MMI) (collectively Mitsui).
Mitsui currently own 49% of the Collingwood and Taroom projects.
The company has formed a new joint venture company the North Surat JV, to consolidate and manage its Collingwood and Taroom projects along with the new Woori coal project.
The JV company will work on the completion of a feasibility study to assess the three projects to determine the optimum development program before 31 December 2013.
The North Surat JV will establish a marketing committee to market coal, while MCH (or a related Mitsui entity) will be the exclusive worldwide marketing agent for coal produced by the North Surat JV.
Cockatoo and its marketing partner, SK Corp will hold marketing rights in South Korea.
