3 October 2011
Clifford Chance advises Sumisho Coal Australia on coal export terminal investment
Clifford Chance has advised Sumisho Coal Australia on its investment in the A$2.5 billion Stage One of the privately owned and funded Wiggins Island Coal Export Terminal (WICET) in Gladstone, Queensland.
Sumisho Coal is a subsidiary of Japan's Sumitomo Corporation, and is involved in a number of coal joint ventures in Queensland, including the Rolleston and Wandoan mines, both of which will export coal through Gladstone.
The conclusion of these financing arrangements with Sumisho and other coal producers allows construction of the Wiggins Island facility to begin. The negotiation also saw rail infrastructure arrangements with Queensland Rail concluded.
Stage One will allow coal producers including Xstrata Coal, Itochu Corporation, and Wesfarmers to export 27 million tonnes coal each year. Once fully constructed, the A$4 billion WICET Project is expected to export more than 80 million tonnes of coal per annum through the Port of Gladstone.
"With the ever-increasing demand for high quality Australian coal, this regionally strategic infrastructure will facilitate a timely mine-to-port solution for Queensland’s coal producers such as Sumisho Coal’s Rolleston Joint Venture," said Clifford Chance partner Jason Mendens.
The Clifford Chance team was led by Jason, with assistance from associate Jerrem Ng. Both are based in Sydney.