Batchfire in talks with government
CALLIDE sale likely but still not certain.
Wednesday 02 March 2016
A spokesperson for Batchfire Resources says they remain on track to finalise the purchase of the Callide mine from Anglo American.
“There are a lot of issues to be worked through, but we are on track to have a settlement - subject to a range of conditions - in late April,” he told Shift Miner.
Just over two weeks ago, Anglo American announced that it had entered into an in-principle sale agreement for the Callide mine. However, neither party has been prepared to shed much light on the deal until it was finalised.
Adding to the complexity of the sale is the involvement of the State Government who through CS Energy, own the Callide Power Station that relies on the Callide mine for coal supplies.
CEO for Batchfire Resources Peter Westerhuis has briefed Queensland Treasurer Curtis Pitt, Energy Minister Mark Bailey, Mines Minister Anthony Lineham and the oppositions Jeff Seeney on the sale process in the last two weeks.
In the meantime, the future of the Callide workforce remains up in the air.
In a short interview with Shift Miner two weeks ago, Mr Westerhuis said there was no point speculating until the deal is finalised.
“What the future is for the current workforce and the proposed Boundary Hill South expansions are both good questions,” he told Shift Miner.
“However the deal is not yet finalised, there are still some mechanical things to be worked through, so any comments about the future of the mine are still, unfortunately, speculative.
“So it is not going to be constructive for us to make comments about them until the deal is finalised, hopefully by April.”
The Callide mine is an open pit thermal coalmine that produces around seven and a half million tonnes of coal a year.
Unlike many other mines, the majority of its coal is sold direct to local power stations on long term fixed contracts.