Mine sale still in the air
MUCH publicised sale process enters its fifth month.
Wednesday 01 June 2016
The future for the Callide mine workforce remains up in the air as negotiations between Anglo American and possible buyer Batchfire Resources enter their fifth month.
An in-principal sale agreement was first announced publicly in January, but a spokesperson for Batchfire told Shift Miner today nothing is finalised.
“No there is nothing more that we can say publicly about the sale process at this time,” he said.
“We are still working through the sale conditions.”
Adding to the complexity of the deal 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 a short interview with Shift Miner in January Mr Westerhuis said there was no point speculating until the deal was concluded.
“What the future is for the current workforce and the proposed Boundary Hill South expansions are both good questions,” he said at the time.
“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.”
The Callide mine is an open pit thermal coal mine that produces around seven and a half million tonnes of coal a year. Unlike many other mines, the majority of its coal is sold directly to local power stations on long-term fixed contracts.