|Coal companies bid for rail infrastructure|
|Wednesday, 26 May 2010 10:49|
Consortium offers State Gov $4.85bn
A consortium of coal producers has put a $4.85 billion offer in for the QR Central Queensland rail network.
The offer was made to the State Government which intends to float the assets of QR’s rail network via an Initial Public Offering later this year.
It covers four systems and the Goonyella to Abbot Point expansion, all of which are focused on coal exports.
The Queensland Coal Industry Rail Group chairman, Nick Greiner, said the offer is better than the Queensland Government could get from an IPO and offers less risk.
“Our offer is able to be settled with the Government prior to the IPO and will not be dependent on volatile equity markets, removing major risk for the state while also providing early settlement,” he said.
“The QCIRG offer has four goals. To encourage fair and open access, optimise network performance, enable early system expansions, and encourage rail haulage competition, all with flow-on benefits through enhanced investment, employment and royalties.”
QCIRG is composed of 13 coal producers – Anglo American Metallurgical Coal, BHP Billiton, Ensham Resources, Felix Resources, Jellinbah Resources, Macarthur Coal, Peabody Energy, Rio Tinto Coal, Vale Australia, Westfarmers Resources and Xstrata Coal – all of which have signed equity agreements. Aquila Resources and New Hope Coal are supporting companies with opt-in agreements.
“In total QCIRG members comprise 98 per cent of the Queensland export coal industry – an export industry with much greater potential than realised to date,” Mr Greiner said.
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