Bloomberg News

Xstrata May Introduce Additional Partner at Wandoan Coal Project

February 14, 2012

Feb. 14 (Bloomberg) -- Xstrata Plc, the world’s largest exporter of thermal coal, said it is investigating options for its Wandoan project in Australia, including the potential to introduce an additional partner.

Wandoan’s initial capacity is intended to be 23 million metric tons a year, expanding to 63 million tons, and with further growth potential beyond that and associated infrastructure, Xstrata said today in e-mailed comments.

Xstrata, which owns 75 percent of Wandoan, and its partners Itochu Corp. and Sumitomo Corp., who each hold 12.5 percent, are studying options for the project’s development, the Zug, Switzerland-based coal producer said today. The project is in the Surat Basin of Australia’s Queensland state.

The Wall Street Journal reported earlier that Xstrata plans to sell 20 percent of its holding in the project, citing a person familiar with the matter that it didn’t identify.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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