New Hope Corporation Limited has announced a scheme of arrangement to combine with Malabar Resources Limited in an all-scrip transaction that the company expects will create a leading Australian coal producer. Malabar shareholders will receive 0.500 New Hope shares per share held, valuing the transaction at approximately $1.8 billion on a 100 percent basis. The combination has been unanimously supported by the boards of both companies, with Malabar directors collectively holding around 13 percent of shares intending to vote in favour.
The transaction reflects New Hope’s strategy to expand production capacity and resource depth through acquisition of Malabar’s flagship Maxwell Mine. Maxwell is an underground operation in the Upper Hunter Valley that is currently ramping up longwall production following first coal in April 2026. The mine is targeting steady-state production of approximately 5.5 million tonnes per annum of saleable coal, with capacity to produce both high-energy thermal coal and semi-soft coking coal products. Combined with New Hope’s existing assets at Bengalla and New Acland, the merger positions the enlarged group to benefit from strong global demand for premium Australian coal.
The combined group will control approximately 5.2 billion tonnes of attributable coal resources, representing an 82 percent increase from New Hope’s standalone position. Management expects the combined operation to be positioned in the first quartile of the global seaborne thermal coal cost curve, with targeted weighted average realised costs reflective of quality-adjusted benchmarks. The transaction targets implementation by February or March 2027, subject to Malabar shareholder approval at a scheme meeting, independent expert assessment, court approval, and customary regulatory clearances including Japanese Fair Trade Commission approval.
From a financial perspective, the enlarged group maintains a conservative balance sheet. Pro forma net gearing stands at approximately 3 percent with pro forma cash of around $840 million, providing substantial liquidity to fund ongoing operations and capital investment. The combination is structured as an all-scrip transaction, requiring no cash outlay, and management has indicated it will consider capital structure optimisation pathways post-completion, including potential refinancing of Malabar’s debt facilities to benefit from the combined group’s improved cost of capital and credit quality.
Production is expected to grow materially as Maxwell ramps up, with long-term targets positioning the combined group for approximately 18.9 million tonnes of attributable saleable production at full steady-state. Maxwell’s resource base of 2.32 billion tonnes supports multiple expansion options, including additional longwall development and the greenfield Maxwell North project, which is currently undergoing feasibility studies. Investors should monitor the scheme booklet dispatch expected in December 2026 or January 2027, the scheme meeting timing, and any updates regarding independent expert assessment. This announcement is price sensitive and has been classified as material by the ASX.
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About New Hope Corporation Limited (ASX: NHC)
New Hope Corporation is an Australian thermal coal miner operating the 100% owned New Acland coal mine in Queensland and the 80% owned Bengalla coal mine in New South Wales. The company sells the majority of its thermal coal production to seaborne export markets throughout Asia, and also engages in port handling, logistics, oil and gas development and production, and agricultural operations.
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