EMR, Farallon strike gold in $1.2 billion sale of Martabe mine
Summary: Owen Hegarty’s EMR Capital and its partner Farallon Capital are said to have done well on the $1.2 billion sale of their Martabe gold mine in Indonesia to the Jardine Mathieson-backed United Tractors.....
EMR’s attention is now said to have turned to the sale of its West Cumbria Mining coal asset in Britain as it needs to sell assets after being highly acquisitive in recent months.
It made a knockout $US2.25bn ($3bn) bid with Indonesia’s Adaro for an 80 per cent stake in Rio Tinto’s Kestrel coking coal mine in Queensland and embarked on a $US320m acquisition of Cerro Colorado in Chile from BHP Billiton.
Hegarty, former managing director of the once-listed miner Oxiana, is EMR Capital executive chairman.
The Martabe sale has proved to be lucrative for EMR and Farallon, both acquiring the mine in 2016 for $775m in a deal funded through debt and equity.
It comes as EMR is expected to head to the boards for an initial public offering of its assets as early as next year.
Meanwhile, the West Cumbria Mining asset is thought to be worth less than $100m and EMR Capital only owns a stake.