Street Talk

Yancoal cools on BHP’s Queensland coal mines: sources

Sarah Thompson, Kanika Sood and Emma Rapaport

Aug 22, 2023 – 8.10pm

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A significant shift is happening in the pool of bidders for BHP’s multibillion-dollar sale of its Queensland coal mines Blackwater and Daunia.

The Daunia coal mine in Queensland is one of two put up for sale by BHP and its partner, Japan’s Mitsubishi.

It is understood interest from Yancoal Australia – one of the five shortlisted parties for the mines – is cooling on the two assets. Bidder sources said while Yancoal had long been seen as a major contender – and publicly expressed its desire to buy –the company was no longer as interested in the mines as before.

It was not known if Yancoal tabled a proposal when sell-side adviser Macquarie Capital called binding bids earlier this month. The ASX-listed miner is majority-owned by China’s Yankuang Energy and has been seen as the suitor that would find it the easiest to line up financing for its bid – but also the one that could have the toughest time with the Foreign Investment Review Board.

Should Yancoal pass on the assets as expected, it would leave BHP with four contenders for the mines: Whitehaven Coal, BUMA Australia, Peabody and Stanmore Resources. Other parties that had shown interest – Coronado Resources and New Hope – are understood to be no longer on the scene.

I’m happy with this as it means I think more money for dividends.