October 19, 2026 - New Hope Group and Malabar Resources have proposed a combination that would bring three Australian coal mines under one corporate structure, expand access to export infrastructure and support a long-term increase in coal production.

The transaction, outlined in an October 19 presentation, values all of Malabar’s equity at approximately A$1.8 billion. It would give New Hope full ownership of Malabar’s Maxwell underground mine in New South Wales, adding to its existing Bengalla and New Acland operations.

The companies are targeting completion in February or March 2027, subject to shareholder, court and regulatory approvals.

Terms of the Proposed Combination

New Hope already owns approximately 25.97% of Malabar. Under the proposed agreement, Malabar shareholders other than New Hope would receive 0.5 New Hope shares for each Malabar share they hold.

The presentation values that consideration at A$2.92 per Malabar share, although its value will change with New Hope’s share price and is subject to specified dividend adjustments.

Existing New Hope shareholders would own approximately 79% of the combined company, while other Malabar shareholders would hold approximately 21%.

The A$1.8 billion equity valuation differs from Malabar’s approximately A$2.4 billion enterprise value, which accounts for debt and cash. The presentation estimates the combined company’s equity value at approximately A$6.3 billion.

Both boards support the transaction. Malabar’s recommendation remains subject to no superior proposal emerging and an independent expert continuing to find the agreement in shareholders’ best interests.

Maxwell Adds Underground Mining and Steelmaking Coal Potential

Located near Muswellbrook in the Upper Hunter Valley, Maxwell is central to the proposed combination.

The mine produces high-energy thermal coal and has the ability to produce semi-soft coking coal for steelmaking. The companies describe Maxwell as having an approved operating life exceeding 20 years and a long-term target of approximately 5.5 million metric tons of saleable coal annually.

That target combines approximately 500,000 metric tons from bord-and-pillar operations, which leave supporting pillars of coal underground, with approximately 5 million metric tons from longwall mining.

Maxwell’s bord-and-pillar operation produced its first coal in March 2023. Longwall production began in April 2026 and is undergoing a staged expansion.

According to the presentation, monthly longwall production before processing increased from approximately 40,000 metric tons in April to 195,000 metric tons in June. The initial longwall stage targets approximately 3 million metric tons of saleable production annually, with wider mining panels intended to support higher output over time.

These figures describe different stages of development; Maxwell has not yet reached its long-term production target.

A Path Toward Nearly 19 Million Metric Tons Annually

The proposed combination would unite Maxwell with New Hope’s 80% interest in Bengalla and its wholly owned New Acland mine in Queensland.

The presentation illustrates attributable saleable production of approximately 14.5 million metric tons in fiscal 2027, 17 million in fiscal 2028 and 18.9 million over the longer term. Attributable production measures the company’s ownership share of output, including 80% of Bengalla’s production.

The companies identify these figures as indicative production profiles based on mine schedules, rather than formal forecasts. The long-term figure represents targeted steady-state production beyond the next five years.

The combination would also increase attributable coal resources by approximately 82%, to about 5.2 billion metric tons. Resources describe the geological coal inventory and should not be confused with coal that is fully approved, economically recoverable or ready for production.

Rail and Port Infrastructure Supports Expansion

Maxwell brings an established transportation and processing network that could support its production growth.

Its infrastructure includes a coal handling and preparation plant capable of processing approximately 850 metric tons per hour, product stockpiles of about 300,000 metric tons, and a 9.5-kilometer conveyor connecting the underground mine with processing and rail facilities.

Malabar also owns the Antiene Rail Spur and holds interests of 7.4% indirectly in Port Waratah Coal Services and 5.5% directly in Newcastle Coal Infrastructure Group.

The companies see opportunities to coordinate coal blending, customer relationships, rail movements, port capacity, staffing expertise and corporate services. They also say the combined financial structure could support Maxwell’s expansion and potentially lower its borrowing costs.

Further Growth Requires Additional Approvals

Beyond Maxwell’s current ramp-up, the presentation identifies a possible second longwall in the Arrowfield seam. That development would require a modification to the mine’s existing approval to increase permitted annual production before processing from 8 million to 16 million metric tons.

Other opportunities include the Warkworth seam and Maxwell North. Warkworth extraction requires further regulatory approval, while environmental and technical studies are underway for Maxwell North, with an indicative regulatory determination in 2029.

These remain development opportunities rather than approved additions to current production.

The transaction itself also faces several conditions, including Malabar shareholder approval, court approval, an independent expert’s assessment and regulatory clearances. New Hope’s existing Malabar shares will not be voted at the shareholder meeting.

The companies expect the combination to provide greater production scale, a broader product range and stronger infrastructure access, with the next major steps being completion of the approval process and continued progress at Maxwell.