Noble helps associate firm Cockatoo Coal secure funds

AUSTRALIAN coal firm Cockatoo Coal Limited - in which Singapore-listed Noble Group owns a 23.1 per cent stake - has secured the release of A$37 million of restricted cash with the help of its major shareholders as it seeks to raise funds amid a dismal outlook for coal players.

Both Noble Group and Korea's SK Networks, which also owns 23.1 per cent of Cockatoo, will provide a bank guarantee in favour of ANZ Bank to replace the cash that now acts as a security to support infrastructure guarantees.

On top of that, Noble and SK Networks have agreed to an offtake agreement, each buying 5.85 million tonnes of coal from the Baralaba mine in central Queensland (or 390,000 tonnes each a year for 15 years), which helps to satisfy a key condition for a A$255 million project finance facility from ANZ.