Xstrata Coal has announced an unconditional offer for Resource Pacific.

Xstrata Coal, the world’s largest thermal coal exporter and one of the largest hard coking coal producers, has made a A$906 million (around £411 million) unconditional cash offer to acquire all the shares in Resource Pacific Holdings Limited – making each share worth A$2.85.

Following Xstrata Coal’s recent co-operation agreement with Marubeni Corporation – Resource Pacific’s largest shareholder – which gave Xstrata relevant interest in Marubeni’s 10.28% shareholding in Resource Pacific, the Australian-headquartered company has a total 15.56% interest in Resource Pacific shares.

Peter Coates, Chief Executive of Xstrata Coal, said: “This is a highly attractive offer for Resource Pacific shareholders, providing the immediate opportunity to realise a cash premium for their investment in a single mine operation.”

Resource Pacific is currently mining one of the largest identified semi-soft coking coal resources, Newpac, in the Hunter Valley in Australia’s New South Wales. Xstrata’s offer makes reference to this, as not only is the Resource Pacific mine located near to a number of Xstrata’s operations, but Xstrata Coal also owns the Newpac mining lease.

The offer would consolidate Xstrata Coal’s position in the Hunter Valley: “We believe our cash offer recognises the full value of Resource Pacific’s Newpac mine and offers an attractive and risk-free premium to shareholders. Xstrata Coal has a proven history of successful long-wall mining in the New South Wales Hunter Valley, with the skills, capabilities and financial stability required to achieve Resource Pacific’s potential,” Mr Coates added.

This offer announcement follows Xstrata Coal’s acquisition of a majority shareholding in Austral Coal Limited in October this year, which gave Xstrata management of the Austral Tahmoor mine, an underground hard-coking coal operation in New South Wales.

Xstrata Coal is an activity of Xstrata Plc, a global diversified mining group which is active in commodity markets – including copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc – and employs around 50,000 people.