The Queensland Coal Industry Rail Group (QCIRG), a group of 13 Australian coal producers, has made a joint cash bid of AU$4.85 billion (US$4 billion) for the QR Central Queensland coal track network in the country's biggest coal state.
The members of the group are Anglo American Metallurgical Coal, BHP Billiton, Ensham Resources, Felix Resources, Jellinbah Resources, Macarthur Coal, Peabody Energy, Rio Tinto Coal, Vale Australia, Wesfarmers Resources and Xstrata Coal, who together comprise 98 percent of the Queensland export coal industry. In addition, Aquila Resources and New Hope Coal Australia are supporting parties and have the opportunity to provide equity at a later stage.
The group said that the Queensland state government dropping its plan to sell both the track network and the coal haulage business in an initial public offer is the condition of the offer.
QCIRG chairman Nick Greiner said that the offer represents a substantial premium to what is likely to be achieved under the Queensland government's proposed public offering. "The QCIRG offer has four goals: to encourage fair and open access, optimize network performance, enable early system expansions, and encourage rail haulage competition," he said in an OCIRG statement, adding that the group's approach is in the best interests of Queensland.
The offer is for the Central Queensland track network, covering four systems and the Goonyella to Abbot Point Expansion, which are used predominately or exclusively by the coal industry.