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$6B Qld coal acquisitions revive sale speculation over worker pay dispute

April 29, 2024

A mining multinational and major mineral producer recently finished transferring ownership of two Central Queensland operations.


BHP recently confirmed it had finished selling its Blackwater (226km west of Rockhampton) and Daunia (169km southwest of Mackay) coal mines.


Successful bidder Whitehaven Coal is paying a combined US$4.1 billion (A$6.2B) for the two sites.


“We are well placed to execute a smooth transition and to integrate the Daunia and Blackwater mines into the Whitehaven portfolio. We are excited to welcome the teams at Daunia and Blackwater into our business,” Whitehaven CEO and managing director Paul Flynn said in a public statement.


However, the new owner might not hold onto both assets in their entirety forever.


“Whitehaven has previously flagged a possible selldown after paying up for the Queensland assets last year in an auction, when it was advised by UBS,” News Limited reported.


“Two parties – one from Japan and one from India – may be about to surface as buyers of a stake. While the identities are unknown, sources pointed to steel producer JSW Group of India or Nippon of Japan.”


QMEB can reveal Blackwater is the most likely mine to sell a 20 per cent interest first, potentially fetching a share in up to US$2.5B (A$3.8B).


No announcements are expected to be made before Whitehaven releases its new March quarter production report on 19 April 2024.


Rumours began circulating after 300 employees rejected Whitehaven’s bid to introduce WorkChoices agreement offsets, which reportedly absorb future superannuation increases and strip those affected of up to $100,000 in accrued entitlements. This was feared to affect those planning to retire or accept a redundancy package.


Very negative feedback prompted management to withdraw its proposal.


“We have heard your feedback about the guarantee of annual earnings clause and the potential for this to remove entitlements that people currently enjoy. This is not Whitehaven’s intent,” executive general manager – operations Ian Humphris previously said in an internal email obtained by the Collieries’ Staff and Officials Association (CSOA).


“Whitehaven will be issuing a contract amendment to remove the guarantee of annual earnings clause. This will ensure all transferring Blackwater and Daunia staff can continue to enjoy their current entitlements once they become Whitehaven employees. Whitehaven will also apply this to open cut overseers.”



CSOA congratulated employees on an “incredible win” at the time.



Source: https://www.qmeb.com.au/6b-qld-coal-acquisitions-revive-sale-speculation-over-worker-pay-dispute/

Queensland breaks ground on CopperString

July 9, 2024
The Queensland Government has broken ground on the first construction works of the $5 billion CopperString project. Work commenced yesterday on the CopperString projects’ first and largest workforce accommodation site. The site will house those charged with building the project’s 840km high-voltage transmission line that will connect Mount Isa to the ‘SuperGrid’ for the first time. The workforce accommodation will house up to 550 construction workers at its peak. These workers will construct a nearby substation and progress early stages of the transmission line development heading west from Hughenden out to Mount Isa. Supercharging the state’s north-west aims to unlock Queensland’s $500 billion north-west minerals province. It’s expected CopperString will be complete in 2029, weather and construction conditions permitting. Queensland Premier Stephen Miles said CopperString is the biggest ever expansion to the state’s publicly owned energy system. “Queenslanders deserve cheaper, cleaner, more reliable energy – to power their homes, our schools, hospitals, shopping centres and more,” Miles said . “CopperString will be the catalyst for transforming Queensland’s north and north-west – opening up mining opportunities, creating more jobs and unlocking critical minerals which will be essential in developing renewable technologies. “This is the start of a long and exciting future for the region and our state.” Commencing later this month, project owner, Queensland Powerlink, will be offering free sessions for businesses along the CopperString corridor to build their capabilities. The program includes five workshops and one-on-one assistance to help businesses build confidence to bid on major projects and supply chain work in the region. “All of North Queensland understands the immense opportunities that CopperString presents for local jobs both directly and indirectly which is why this is such a momentous day,” Resources and Critical Minerals Minister Scott Stewart said.  “Critical minerals are the next big boom for the resources industry and the feedback I’ve had from companies is that this project is key to unlocking those opportunities.” Source: https://www.australianmining.com.au/queensland-breaks-ground-on-copperstring/

Showcasing the best in underground mining

July 8, 2024
Underground mines are busy places, and it’s vital companies are on top of their processes to enable an efficient and safe underground operation. Whether it’s having the best equipment to drive higher production, maximise return on investment, minimise waste or keep workers out of harm’s way, mining companies benefit from understanding and investing in the right underground technologies. Source: https://www.australianmining.com.au/showcasing-the-best-in-underground-mining/

BHP goes green at ‘world’s largest’ copper mine

July 8, 2024
BHP has started environmental processing to have the transport at its Escondida copper mine in Chile transitioned to an electric trolley system. The Big Australian will invest around $US250 million ($371.6 million) in the project at Escondida, which it owns in a joint venture with Rio Tinto. The funds will go towards installing key infrastructure to electrically assist the movement of extraction trucks in areas where the highest fuel consumption currently takes place. BHP has submitted an environmental impact statement to the Environmental Impact Assessment System in Chile. “The electric trolley system is one of the initiatives with which we seek to move towards a safer and more sustainable way of operating hand in hand with technology,” BHP Escondida president Alejandro Tapia said . “This project will allow us to reduce the fuel consumption of our extraction trucks and thus advance our goal of net-zero operational greenhouse gas emissions by 2050.” The project includes the construction of a new electrical substation and transmission lines both inside and around the Escondida Norte pit. These facilities will electrically assist the movement of trucks inside the mine in the areas where they go up loaded with ore and, consequently, consume more fuel. With this new technology, instead of using diesel, they will be propelled by electrical power, reducing greenhouse gas emissions and improving productivity associated with truck performance given the higher travel speed. Once construction kicks off up to 160 jobs are expected to be created. The trolley project is in addition to other technological transformation initiatives that the company maintains in different stages of study and execution, including the progressive incorporation of autonomy in its mining equipment.  To date, Escondida has six autonomous trucks in full operation and by 2025 it expects to have the largest fleet of autonomous equipment in South America. Source: https://www.australianmining.com.au/bhp-goes-green-at-worlds-largest-copper-mine/
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