Noble closes disposal of Mongolian coal subsidiary

ASIA'S largest commodities trader, Noble Group, has closed the disposal of its equity interest in its wholly-owned Mongolian coal subsidiary Enkhtunkh Orchlon LLC for an aggregate consideration of up to US$65 million, following the exercise of an option on Dec 24 last year.

The consideration will be satisfied in cash and was agreed on a willing-buyer, willing-seller basis, taking into account the development prospects of the tenement owned by Enkhtunkh Orchlon, which comprises 50,022 hectares of land in Mongolia's South Gobi basin, Noble said in a statement.

The trader had previously conducted exploration activities at Enkhtunkh Orchlon's tenement. These activities include mapping, ground magnetic and geophysical surveys as well as the drilling of 200 holes which confirmed coking and thermal coal on the tenement, Noble said.

Based on Noble's latest financial statements as at end-2014, the book value and net tangible asset value of the shares of Enkhtunkh Orchlon were US$57.8 million and US$57.5 million, respectively.

Before news of the announcement, Noble's counter closed trading up 2.94 per cent at S$0.70.