November 26, 2018 / 5:02 AM / 16 days ago

UPDATE 1-Australia's New Hope to buy Mitsui's 10 pct stake in Bengalla coal mine

(Adds background, details on Taipower stake)

Nov 26 (Reuters) - New Hope Corp Ltd will buy a further 10 percent stake in the Bengalla thermal coal mine in Hunter Valley, New South Wales from Japan’s Mitsui & Co Ltd for A$215 million ($155.7 million), the Australian coal miner said on Monday.

New Hope will now own up to an 80 percent interest in Bengalla. The mine contributed more than half of the company’s profit last year and is expected to continue producing for more than 20 years.

The Mitsui transaction comes three months after Wesfarmers Ltd struck a deal to sell its stake in the Bengalla mine to New Hope, which held a 40 percent stake in the mine at the time.

New Hope also said on Monday Taiwan’s Taipower, which currently holds a 10 percent stake in the mine, will buy another 10 percent from Wesfarmers.

Debt-free New Hope expects to fund the deals from cash and a new bank credit facility.

$1 = 1.3806 Australian dollars Reporting by Devika Syamnath in Bengaluru; Editing by Amrutha Gayathri

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