This article was published on Aug. 12, 2025, at 5:06 p.m. on the ChosunBiz MoneyMove site.
The Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) is selling its stake in a joint venture operating a coal mine in Australia. The mine was originally put on the disposal list in accordance with government policy in 2021, but the bidding failed due to a lack of buyers.
On the 12th, according to investment banking (IB) industry sources, the corporation began the sale process for its 82.25% equity stake in the joint venture 'Wyong Areas Coal Joint Venture (WACJV)' for operating the Wyong coal mine in Australia. It has been confirmed that the stakes held by the Australian mining company Centennial Coal (13.5%) and the domestic energy firm Kyungdong Invest (4.25%) are excluded from this sale. The corporation is reported to have created and distributed a teaser letter directly without appointing a separate consulting firm.
Located 80 km north of Sydney, the Wyong mine is regarded as a 'high-quality mine' in the resource industry. According to an assessment report obtained from the Australian consulting firm Pallaris at the end of last year, the coal reserves amount to 1.133 billion tons, with an annual mining capacity of 5 million tons. The average annual free cash flow (FCF) of the Wyong mine is about 175 million Australian dollars (approximately 160 billion won). Located 70 km from the Newcastle Port on the eastern coast of Australia, it is also evaluated to have well-established infrastructure for exports and operations.
Korea has made efforts to secure the Wyong coal mine, spearheaded by the Korea Mine Rehabilitation and Mineral Resources Corporation's predecessor, the Korea Mineral Resources Corporation. The acquisition of exploration rights from the Australian state government began in October 1995 during the administration of Kim Young-sam. Later, during the Roh Moo-hyun administration in 2005, it acquired a 78% equity stake in the global resource company BHP, becoming its largest shareholder. After the inauguration of the Moon Jae-in administration in 2018, it received development permits from the state government, and the following year, it received environmental impact assessment approval.
Coal with low carbon content but higher volatility compared to anthracite is known to be a strong energy source. It is primarily used for thermal power generation, cement production, cokemaking for steel mills, and as raw materials in chemical manufacturing. According to the corporation's key mineral price trends, the price of coal in August is around $115.91 per ton, showing an increase compared to the previous month. The ongoing Russia-Ukraine war is believed to be driving up the price of coal, with Russia being a major exporter.
The reason the corporation is putting the high-quality mine on the market is to reduce its liability. As of the end of last year, the corporation's consolidated assets amounted to 4.5156 trillion won, with liabilities standing at 7.72 trillion won. Capital is in a negative (-) 3.2048 trillion won situation, with complete capital erosion. This is why the corporation is moving to dispose of not only the Wyong mine but also stakes in various foreign investment assets, including the rare earth production company Xi'an Maxsun New Materials Co., Ltd. in China and the Boleo copper mine in Mexico.
The corporation plans to receive bidding documents until the 19th and notify the shortlisted candidates the following day. After negotiating conditions such as sale price and payment methods with two or more qualified candidates, the final purchaser will be selected.