Australia’s New Hope buys 15% stake in Malabar Resources amid soaring coal prices

Aug 3 (Reuters) – Australia’s New Hope Corp Ltd (NHC.AX) said on Wednesday it had bought a 15% stake in Malabar Resources Ltd for 94.4 million Australian dollars ($65.25 million) to strengthen its coal activity in a context of soaring prices.

Coal prices hit record highs after Western countries imposed sanctions on Russia for its invasion of Ukraine and European importers rushed to find alternative sources of fuel.

New Hope said its investment in Malabar, which owns the Maxwell underground metallurgical coal mine in New South Wales (NSW), aligns with its strategy of spending excess cash on low-cost coal assets. cost with long term approvals.

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“We expect thermal coal prices to remain at historically high levels in the short to medium term,” New Hope said in a statement.

The miner said it was selling more coal domestically from its majority-owned mine at Bengalla in New South Wales, in addition to its current contractual supply arrangements, as calls grew. stronger for the maintenance of energy security in the country. Read more

New Hope also said higher coal prices had helped it somewhat offset damage to the Bengalla mine from severe flooding last month, which forced peer Yancoal Australia Ltd (YAL.AX) to revise downwards its production forecasts for 2002. Read more

($1 = 1.4468 Australian dollars)

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Reporting by Tejaswi Marthi in Bengaluru; Editing by Subhranshu Sahu

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