WEST Australian mining entrepreneur Tony Sage is close to finalising due diligence on beleaguered Griffin Coal.
Mr Sage said he was reviewing making a play for the company at the debt level, instead of picking over its various assets.
He said the move would be similar to his mining vehicle Cape Lamberts purchase of the debt of failed Queensland miner Copper Co.
Ric Stowes Griffin Coal was placed in administration on January 4 after missing deadlines for the payment of debt instalments and tax liabilities.
Griffin Coal is thought to have about $1 billion of unsecured debts but Mr Sage said it was likely to be up to $3bn.
We are treading carefully and the due diligence is expected to be complete in a fortnight, Mr Sage said.
He added that once the due diligence was complete, he would start talking to key stakeholders of the group.
The privately held Griffin produces between 5 million and 6 million tonnes of thermal coal annually from its Western Australian mines, mostly for domestic power stations.
Griffin Coal owns, and can sell, Griffin Power, which runs the Bluewater power stations in WA but Griffin Power is not in administration.
CFE Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
