A number of companies have reportedly made it through to the next round of the sales process to buy BHP’s Daunia and Blackwater mines in Central Queensland for up to $9bn. See who they are.
The Australian reported Peabody Energy was through to round two of the sale process for the Daunia and Blackwater mines, according to industry sources, with final bids expected by the end of June.
Queensland treasurer Cameron Dick on Tuesday also named Peabody as an interested party to buy the two mines which were initially poised to fetch a collective $2bn.
The Australian reported those in the market thought the mines were unlikely to reach the higher prices, but it would “all come down to the coal price and production projects being attributed to the assets”.
“Should they fetch such numbers, sources say this would knock Coronado out of the running, and potentially other Australia listed groups,” it reported.
“One option is that a group such as Coronado or Peabody partners with other groups such as a Japanese strategic player to pay up to win the competition.”
BHP announced it was selling the mines back in February to focus on its high-quality coking coal operations.
Its decision came after the state government hiked up royalties, a decision which has have proven vastly unpopular with Bowen Basin mining giants.
Earlier this month, Queensland Resources Council chief executive Ian McFarlane said the royalties were causing concern among international investors, with Queensland dropping seven places in a new international survey.
“In the Fraser Institute Annual Survey of Mining Companies 2022, on the question of Queensland policy perception, the state fell to 28th place just ahead of Brazil and Victoria, and 16 places behind Tasmania,” Mr Macfarlane said.
He said the full impact would be felt in five to 10 years time when “new projects dry up along with thousands of jobs”.
Treasurer and Minister for Trade and Investment, The Hon Cameron Dick during Question Time at Queensland Parliament House on Tuesday. Picture: Glenn Campbell
In contrast Mr Dick said the royalties were “progressive” and were followed by “announcement after announcement of new investments” including BHP’s plans to add an extra 93 years to its Peak Downs coal mine near Moranbah.
“None of us will be around at the end of that lease, but the legacy from our progressive coal royalties will still be here,” he said.
“Just imagine the profound way these royalties will have shaped our magnificent state over the next 93 years.
“BHP’s investment shows the faith the company has in our government’s ability to support the future of Queensland coal mining.”
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