Thiess and RAG Australia Coal complete purchase of North Goonyella Coal Mine

RAG Australia Coal Pty Ltd and Thiess Pty Ltd last night announced completion of the purchase of North Goonyella Coal Mine from Sumisho Coal Development Pty Ltd.

A Bowen Basin underground longwall mining operation, North Goonyella produces high quality coking coal for export to steel mills in Japan, other parts of Asia and to Europe. The mine produced 2.4 million tonnes in the 1999/2000 financial year.

The RAG Thiess Consortium (with 60/40 equity respectively) has purchased outright the mine and related assets.

 RAG will manage the project and will take all responsibility for coal sales, while Thiess will operate the mine under a life-of-mine contract with an initial value of more than $300 million.

 Both RAG and Thiess have extensive coal mining experience, which they will draw upon to continue to improve North Goonyella’s productivity and competitiveness. The two companies own and operate the nearby Burton open cut coalmine and expect to be able to achieve synergistic benefits through co-ordinated management of both projects.

Sumisho parent company, Sumitomo Corporation, will continue on as coal marketing channel to assist the new consortium in servicing North Goonyella coal sales to customers in Japan.

Ends.

Released by Sumisho Coal Development Pty Ltd, RAG Australia Coal Pty Ltd & Thiess Pty Ltd

For further information contact:

SUMISHO
Mr Mark Shibahara
Managing Director
617 3229 2111

RAG COAL INTERNATIONAL
Dr Gerd Stolte
Director
49 201 177 3500

Mr Wolfgang Unterkoetter
Corporate Communications
49 201 177 4027

THIESS
Mr Murray Fox
General Manager Qld/NT/Pacific
0418 880 924

Ms Fiona Murcott
Public Affairs Manager
61 7 3368 0537/0419 758 196