Forum Archive Index - June 2002

["G Stolwyk" <stolwyk@wave.co.nz>]

AUSTRAL COAL LIMITED 2002-06-07 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
Austral Coal today announced settlement of a multi-million dollar
syndicated loan facility with three leading financial institutions,
which will accelerate cash flow and contribute to the Tahmoor mine
expansion program.

This follows the company's raising of a net $30 million in new equity
through a recentlyconcluded placement and Share Purchase Plan.

Austral Coal Managing Director Ugo Cario said that the syndicate
included NM Rothschild & Sons (Australia) Limited, HSBC Precious
Metals (Australia) Limited and Fortis Bank SA/NV Singapore branch.

The facilities were arranged by N M Rothschild & Sons (Australia)
Limited, which will also act as syndicate Agent.

"The facilities include an A$18 million project loan facility half
of which was used to restructure the Company's foreign currency
contracts, US$55 million foreign exchange hedging limit, A$2 million
guarantee facility and US$7.5 million coal sale facility".

"The restructure of existing foreign exchange contracts is expected
to accelerate cash generated from operations over the next two years.
This, together with the balance of the project loan facility, will
assist in funding the infrastructure upgrade and new asset purchases
currently underway at the Tahmoor mine in preparation for extraction
of the Tahmoor North reserves beginning in 2004".

"Austral Coal's expansion plans remain on track with year to date
mine operating performance and infrastructure investment on schedule.
The syndicated facility represents the completion of another
strategic plank in the funding and development of Tahmoor North".

"The support which the company is receiving from financial
institutions as well as our shareholders is extremely pleasing and
reflects a recognition of the company's fundamental strengths and the
opportunities to be realised from our expansion program," Mr Cario
said.

Contacts: Ugo Cario, MANAGING DIRECTOR or Stephen Peterson, COMPANY
SECRETARY on (02) 8256-4700