Australia’s coal consortium hikes bid for Queensland Rail coal rail track
10 Aug 2010
A consortium of 13 coal companies in Australia have hiked their bid by $500 million to A$5.35 billion ($4.8 billion), for Queensland state railway assets, forcing the state government to rethink its planned floatation of Queensland Rail's coal rail track network.
Queensland premier Anna Bligh and treasurer Andrew Fraser have been digging in their heels for a floatation before the end of the year despite the consortium making a A$4.85 billion ($4 billion) cash bid in May 2010. (See: Australian miners bid A$4.85-billion to prevent Queensland Rail IPO)
''The government is not going to comment on ongoing commercial negotiations,'' Fraser, said today in a statement. The state wants to go ahead with its planned IPO in the fourth quarter, he said.
Coal miners are worried that the by privatising the rail network, the new owner could exert too much power over the coal industry.
A consortium of 13 coal companies that are part of the Queensland Coal Industry Rail Group (QCIRG) with heavyweight miners like BHP Billiton, Rio Tinto, Xstrata, Peabody Energy, Anglo American, Felix Resources, Macarthur Coal and others, made a joint A$4.85 billion ($4 billion) cash bid for Queensland Rail's coal rail track network in May this year.
The consortium is ready to acquire the rail network if the Queensland state is willing to shelve its IPO plan for the track network and the coal haulage business, including trains and wagons.
Analysts had surmised that the nearly $2 billion extra being offered over the IPO price will put pressure on the state to rethink and shelve its plan for an IPO.
