Callide coal mine changes hands
An international firm has advised Batchfire Resources on its acquisition of the Callide coal mine in Queensland.
![Lyndon Masters, DLA Piper](/images/Lyndon-Masters.jpg)
Firm: DLA Piper (Batchfire Resources); MinterEllison (Anglo American)
Deal: Batchfire Resources acquired the Callide coal mine from Anglo American.
Value: Undisclosed
Area: M&A
Key players: The DLA Piper team was led by Brisbane corporate partner Lyndon Masters (pictured) and senior associate Alexander Samson.
Deal significance: Batchfire Resources (Batchfire) acquired the Callide coal mine (Callide) from Anglo American.
Callide has been in operation since 1945 and has produced over 232 million tonnes of coal. The mine delivers approximately 5.5 million tonnes per annum of coal to the adjacent Callide power stations, which generate up to approximately 18 per cent of Queensland’s electricity.
This complex transaction brought together the vast coal mining experience of the Batchfire management team with the private equity funding and coal brokerage expertise of Avra Commodities Pte Ltd (Avra) to achieve a successful transaction and the revision of coal supply agreements with the neighbouring Callide B and Callide C power stations.
Batchfire will also continue to supply Queensland Alumina Limited under a long-term supply arrangement.
Callide will continue to operate uninterrupted throughout the acquisition process.
“Batchfire's acquisition of the Callide mine reflects the current status of M&A activity in the Australian coal sector, whereby smaller privately funded companies are seeking to acquire unique coal assets from the traditional major mining houses, where they see significant growth potential from the asset that the traditional mining houses may not be in a position to realise,” lead partner Lyndon Masters said.
“The continuation of the existing domestic supply arrangements for Callide coal, coupled with coal export opportunities presented by Avra's coal brokerage network, means that Batchfire is very well placed to substantially increase value for its shareholders in the short and long term.”