The rationalisation of Australia's coal sector seems set to continue with Peabody Resources recently signalling its intention to exit Australia. The world's biggest coal miner, Peabody has stakes in five mines in New South Wales and Queensland which produce around 20 million tonnes per annum of coking and thermal coal.
Chief executive Irl Englehardt said Peabody would engage outside advisers to evaluate "the full range of options to maximise the value of its Australian coal holdings".
"During this period of rapid change and consolidation in the coal industry, it is only prudent to explore all our options to capture the full value of these resources," Englehardt said.
"We have very profitable and growing operations in Australia. However, we believe that their value may be improved if they are combined with other synergistic operations."
Peabody's main assets include 55% of the 5.5 million tonne per annum Moura mine in Queensland, and in NSW 40% of the 5.6Mtpa Bengalla mine, 100% of the 4Mtpa Ravensworth-Ravensworth East mines, 50% of the adjacent 2Mtpa Narama mine, and 43.75% of the 5Mtpa Warkworth mine.
Because Japanese steel makers, including Nippon Steel, Mitsubishi and Mitsui, have direct interests in the Moura, Warkworth and Bengalla mines, Anglo American is thought to have the best shot at acquiring Peabody's Australian operations. Rio Tinto and Billington/Ingwe are also thought to be likely to bid for the mines.
