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Central Qld coal mines could sell for $5B

Daunia coal mine trucks
Daunia coal mine trucks

A mining giant could exit two fossil fuel operations for a higher than expected sum in Queensland’s Central Highlands and Isaac regions.

Whitehaven Coal was recently speculated to offer $4.8 billion for BHP’s Blackwater (226km west of Rockhampton) and Daunia (170km southwest of Mackay) coal mines.

UBS analysts believe the potential deal could comprise of an upfront $3.1B payment, $2.3B in debt and a deferred $2.3B sum. If the rumour is confirmed the amount would exceed UBS’ latest valuation of $4.5B according to News Limited.

Other potential buyers include Yancoal, Stanmore Resources, BUMA Australia and Peabody Energy.

Whitehaven did not say whether it made the bid. It only expressed interest in purchasing the two mines in question.

“Whitehaven Coal confirms it is participating in the sale process initiated by the BHP Mitsubishi Alliance in relation to the Daunia and Blackwater metallurgical coal mines in Queensland,” a spokesperson said in a public statement.

“At this point in time the process is ongoing … [and] Whitehaven will continue to keep the market informed in accordance with its continuous disclosure obligations.”

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