2008

Marubeni has agreed with Xstrata Coal to increase its shareholding in Resource Pacific Holdings Pty Limited to 22.22%, which becomes an affiliated company of Marubeni.

Oct. 16. 2008
Marubeni Corporation


Marubeni Corporation and Marubeni Coal Pty Ltd (together “Marubeni”) have agreed with Titan Holdings Finance Pty Limited (“Titan”), a wholly owned subsidiary of Xstrata Coal Pty Limited (“Xstrata Coal”), both of Australia, to increase Marubeni’s shareholding in Resource Pacific Holdings Pty Limited ( “RP”) also of Australia, from the current 10.24% to 22.22%. This deal requires Marubeni to make a further investment of \13 billion in RP. RP will become Marubeni’s affiliated company.

Following the Cooperation Deed executed last December by Marubeni and Titan, Marubeni has worked with Titan as an “associate” during its takeover bid for RP and has been granted an option to purchase RP shares upon the completion of the takeover bid.

Marubeni and Titan have been in negotiations with regard to the exercise of the call option and the new shareholders agreement since April of this year, when the takeover of RP was completed, and have now reached an agreement.

RP has been producing high quality semi-soft coking coal from the Ravensworth Underground coal mine (formerly known as the Newpac coal mine) in the Hunter Valley, New South Wales, Australia since 2004. It expanded its annual production capacity up to 4 million ROM tons by installing a longwall in January 2007 and has been ramping up operations since then.

Through this further investment in RP and existing sales agency for Ravensworth Underground coal, Marubeni will secure the supply source of high quality semi-soft coking coal and will have active involvement in the management of RP through its representation on the board of RP.

Marubeni also intends to strengthen its relationship with Xstrata Coal, by further exploring collaboration opportunities with Xstrata Coal in the worldwide coal industry.

<Company profile of Resource Pacific Holdings Pty Limited>
Company Name : Resource Pacific Holdings Pty Limited
Location : Level 38, Gateway, 1 Macquarie Place, Sydney NSW 2000, Australia
Main Business : Management and operation of Ravensworth Underground coal mine

<Company profile of Xstrata Coal Pty Limited>
Company Name : Xstrata Coal Pty Limited
Location : Level 38, Gateway, 1 Macquarie Place, Sydney NSW 2000, Australia
Main Business : Production and marketing of coal worldwide

<Related Release>
May 18, 2007 Marubeni has agreed to subscribe to 23.6 million shares of Resource
Pacific Holdings Limited by way of a share placement
http://www.marubeni.com/news/2007/070518e.html

 

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