Whitehaven confirms interest in two massive Queensland coal mines
Whitehaven Coal has confirmed it is in the running to acquire BHP’s major Daunia and Blackwater coal mines in Queensland after a major investor alleged the company had selectively briefed some of its shareholders and suggested the market was “misinformed”.
In a brief statement, Whitehaven said it was “participating in the sale process” for the two coking coal mines, and that it had suspended its share buyback as it considered acquisitions, which included those operations.
“The board will make a decision regarding resumption of the share buy-back at the appropriate time,” it read. “Whitehaven will continue to keep the market informed in accordance with its continuous disclosure obligations.”
The Daunia coal mine in Queensland is one of two put up for sale by BHP and its partner, Japan’s Mitsubishi.
The proposed acquisitions of the two mines, in an auction being conducted by Macquarie, and the status of Whitehaven’s share buyback was at the centre of complaints made by Bell Rock Capital Management in a letter sent to Whitehaven’s board at the weekend. The Australian Financial Review first reported the contents of that letter on Monday.
Bell Rock, which controls just under 5 per cent of Whitehaven shares, had asked for “urgent clarification” about when the share buyback program would recommence, claiming the company had told investors at a meeting in Singapore following its annual results this would be delayed if it was successful in acquiring the Daunia and Blackwater mines.
Whitehaven chief executive Paul Flynn had last month flagged that a pause in the share buyback scheme was unlikely to last for long.
“If our understanding of what was said… at the investor meeting is correct, Bell Rock is concerned that the market is
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