By Clare Chapman.
In a massive turnaround since last Christmas Queensland mining giant Macarthur Coal has announced its intention to take full ownership of Middlemount mine and acquire Gloucester Coal in a $1.2 billion deal.
This time last year the global financial crisis took its toll on Macarthur forcing it to slash production by 25 per cent and cut 180 staff.
The merged company is likely to be worth about $4.5 billion and will become the biggest independent coal producer in Australia.
Macarthur managing director Nicole Hollows said the takeover deal would create jobs in the central region, double the company's production in the next few years and signalled the return of a strong market.
The company operates the Coppabella and Moorvale mines in the Bowen Basin and is set to take full ownership of the Middlemount coal mine, of which it currently owns 74.66 per cent.
"The expansion gives us more resilience and reduces some of the risks that we have experienced in the past," Ms Hollows explained.
She said Macarthur's quick 12-month turnaround was due to increase production in the middle of the year when China imported the company's excess product.
"You can thank China for the quick turnaround because they imported all the surplus product. That allowed us to ramp up production."
The conditional agreement announced on Tuesday would see the company expand into New South Wales, operate eight mines and ship from both Abbot Point and Newcastle.
"Macarthur Coal will have a greatly-expanded scale and diversity in terms of geography, mines, ports and products," Ms Hollows said.
"Our goal is to double production within five years."
Macarthur spokesperson Alasdair Jeffrey said the deal was likely to be done by May.
Taken from The Daily Mercury 24 December 2009