Aug 3 (Reuters) - Australia's New Hope Corp Ltd (NHC) said on Wednesday it bought a 15% stake in Malabar Resources Ltd for A$94.4 million ($65.25 million) to beef up its coal business amid a price boom.
Coal prices hit record highs after Western countries imposed sanctions on Russia for its invasion of Ukraine and European importers scrambled for alternative sources of the fuel.
New Hope said its investment in Malabar, which owns the Maxwell underground metallurgical coal mine in New South Wales (NSW), aligned with its strategy to spend surplus cash on coal assets that were low on cost with long life approvals.
"We expect thermal coal pricing to remain at historically high levels for the short to medium term," New Hope said in a statement.
The miner said it was selling more coal to the domestic market from its majority-owned Bengalla mine in NSW, in addition to its current contracted supply deals, as calls grew louder for maintaining energy security in the country.
New Hope also said higher coal prices helped it somewhat offset the damages suffered at the Bengalla mine due to severe flooding last month, which compelled its peer Yancoal Australia Ltd (YAL) to trim its 2002 output forecast. ($1 = 1.4468 Australian dollars)
News: NHC Australia's New Hope buys 15% stake in Malabar Resources amid coal price boom
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