Young entrepreneur Nathan Tinkler wades back into coal sector with $480 million buy

Nathan Tinkler, the electrician-turned-coal magnate whose fortune is valued at $366 million, has purchased an undeveloped coal project for $480 million and announced plans to eventually float his new company, Aston Resources.

Tinkler has shot to prominence in recent years as one of Australia’s biggest owners of thoroughbred race horses, after spending around $200 million to establish a breading, training and racing operation.

But in business circles he is best known as the man who sold a coal mine to Queensland-based coal company Macarthur Coal in a deal that would eventually be worth more than $400 million.

In this latest deal, has agreed to purchase the undeveloped Maules Creek thermal coal despot in New South Wales from Coal & Allied, a subsidiary of mining giant Rio Tinto.

Tinkler told the media he thought the coal sector was “too hot” after this deal with Macarthur, but the Maules Creek deal represented a chance to grab one of the last tier-one thermal coal projects in Australia.

“It is not often a company like Rio Tinto lets an asset go, but the coal quality and the size of the open cut reserve will ensure the asset has a low cost base and coal is highly sought after,” Tinkler told the Australia.

He said he has been working on the deal for nine months and has the backing of a number of private investors. Aston is likely to make further acquisitions, although the Maules Creek project – believed to be worth around $150 million – will be the company’s major asset.

Aston also has an interest in the Dingo coal project in Queensland that is being developed in conjunction with listed company Cockatoo Coal.