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It continued mining and shipping coking coal in sub-zero temperatures from its Russian mines to clients in Asia. None of the coal made its way to Australia.
In April, Tigers Realm lost its Federal Court battle contending that Commonwealth sanctions on importing, buying and transporting Russian coal did not apply to the ASX-listed entity. Its lawyers argued that as the miner was only “transporting” the coal within Russia, it did not fall within the sanctions.
But Justice Geoffrey Kennett said the word “transports” in the sanctions regulation had its ordinary meaning and applied to Tigers Realm’s operations.
The company subsequently announced the sale of its operations – two coking coal mines and an export terminal in the country’s far east – to APM Invest, which is owned by Russian mining tycoon Mark Buzuk, for $US49 million ($74 million) cash.
Russian President Vladimir Putin and Kirill Dmitriev, head of the Russian Direct Investment Fund. Credit: AP
One potential issue is that the proposed deal, which will mean the sales proceeds are returned to shareholders, will return funds to a shareholder, the Russian Direct Investment Fund, sanctioned by the Australian government and described by the US Treasury as being “widely considered a slush fund” for Russian President Vladimir Putin.
The RDIF has rejected that description.
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The Australian government sanctioned the fund and its chief executive, Kirill Dmitriev, shortly after Russia’s invasion of Ukraine.
The fund, which has an 8.41 per cent stake in the company, was established by Putin in 2011 as Moscow’s sovereign wealth fund to make it easier for foreign firms to co-invest with the Kremlin in Russian companies.
Logistics billionaire Paul Little and his wife, University of Melbourne chancellor Jane Hansen, own a 5.63 per cent stake via Namarong Investments, but have said they have been unable to sell the stake.
Tigers Realm floated on the ASX in August 2011 at 50¢ a share, with backers including mining entrepreneur Owen Hegarty, touting grand plans of building a new metallurgical coal mine in Russia.
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The stock last traded at 0.4¢, valuing the group at $52 million.
Tigers Realm increased its coal output in 2023 by 56 per cent from 2021. Its most recent annual financial report shows the company raked in a revenue of $140 million in the year to December 31, and a net profit of $46 million.