AMSJ » Bowen Basin coal equipment sells ‘above’ book value

Bowen Basin coal equipment sells ‘above’ book value

Anglo American Dawson Coal Mine truck
Anglo American Dawson Coal Mine truck

Mine machinery attracted higher than expected offers in Central Queensland.

Macmahon recently exited a substantial portion of its mobile equipment fleet at Anglo American’s Dawson South Coal Mine in Kianga, 198km south of Rockhampton.

Bids were highly competitive and even fetched more than they were originally estimated to be worth.

“The mobile equipment was sold at market rates which were at or above book value for cash consideration, and is expected to result in net cash inflows of approximately $44 million to be collected during fiscal 2024 (FY24) and FY25,” the contractor said in a public statement.

“No new capital expenditure is expected over the new term due to the divestment of a large portion of the Dawson South equipment fleet, which will be utilised on the project.”

The remarks came as the employer’s existing contract at the mine was due to expire on 30 June 2024. If a new contract is awarded 210 existing employees will stay on.

Parties were still negotiating terms of the new deal, which was expected to take effect no later than July 1 at the time of publication.

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