A new method for cleaning metallurgical coal to verify coal quality for coke making could replace a widely-used chemical-based process leading to a more accurate assessment of the economic viability of coal projects.
The Perth-based miner has agreed to purchase 45 million shares of the Canadian junior at a price of $2.45 per share, or about 15% of Arizona Mining’s outstanding shares.
The lenders’ move follow a decision by Australia’s second-largest bank Westpac to only fund new projects in existing, rather than new, coal basins as part of its new climate policy.
Christy Clark has proposed a ban on the export of U.S. thermal coal from B.C. ports in retaliation for the recent imposition of a 20% duty on Canadian lumber.
The miner said decision was unrelated to Elliott Management's call earlier this month to unlock shareholder value by spinning off about $22 billion of BHP's US oil assets.