BHP names Whitehaven preferred Qld coal bidder
Whitehaven Coal was named the leading bidder for BHP’s Daunia and Blackwater coking coal mines in Queensland, inflaming the war between Whitehaven and its London shareholder, Bell Rock, which has lobbied the coal miner to pull out of the auction.
The Daunia coal mine in Queensland is one of two put up for sale by BHP and its partner, Japan’s Mitsubishi.
“BHP confirms that Whitehaven Coal has been selected as the preferred bidder in the divestment process,” BHP said in its quarterly operations report on Wednesday.
No further information was provided but Whitehaven shares have been placed in a trading halt until Friday, suggesting Whitehaven will turn to the task of financing the purchase of the two mines. Whitehaven had more than $2.3 billion of cash on hand at June 30.
Whitehaven’s successful bid comes as Bell Rock chief investment officer Mike O’Mara said Whitehaven and the ASX should ensure shareholders get a chance to vote on the deal.
“We have raised our concerns about the transformative nature of this proposed transaction with the ASX,” said Mr O’Mara. The hedge fund is frustrated that Whitehaven suspended its share buyback in August while it bid for the BHP mines.
“The deal must be superior to the value on offer in the company’s own share, as per the published capital allocation framework,” said Mr O’Mara.
Separately, BHP’s iron ore and coking coal mines made a slow start to the year with BHP producing 69.4 million tonnes of iron ore in WA in the past three months. BHP has promised to produce between 282 million and 294 million tonnes of iron ore in the year to June 2024.
The company dug up 285.3 million tonnes of iron ore last year, but sold only 280.7 million tonnes, meaning that at June 30 it had 4.6 million
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