Noble wraps up sale of Mongolian coal unit

Singapore

ASIA's largest commodities trader Noble Group has closed the disposal of its wholly owned Mongolian coal subsidiary Enkhtunkh Orchlon LLC (EO) to Australian-listed Guildford Coal 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, among other things, the development prospects of the tenement owned by EO, which comprises 50,022 hectares of land in Mongolia's South Gobi basin, Noble said in a statement on Friday.

In February last year, Noble's subsidiary Noble Resources International Pte Ltd (NRIPL) acquired EO for US$3.76 million. The trader had previously conducted exploration activities at EO's tenement, including mapping, ground magnetic and geophysical surveys…