Whitehaven Coal has confirmed it is currently in line to acquire BHP’s Daunia and Blackwater metallurgical coal mines in Queensland.
As reported by the Australian Financial Review (AFR), the confirmation came after a major investor alleged the coal miner had selectively briefed some of its shareholders.
In a brief statement to AFR, Whitehaven said it was “participating in the sale process” for the two coal mines, and it had suspended its share buyback as it considered acquisitions like those mines.
“The board will make a decision regarding resumption of the share buy-back at the appropriate time,” the statement said. “Whitehaven will continue to keep the market informed in accordance with its continuous disclosure obligations.”
This statement is supported by Whitehaven’s 2023 financial year (FY23) report, where it was “decided that the share buy-back should be temporarily suspended while (the company) considers application of (its) capital allocation framework in light of growth opportunities, and will provide shareholders with an update at the appropriate time.”
After the AFR’s report was published, Whitehaven responded via the ASX. The coal miner repeated the same statement from its FY23 report.
“Whitehaven Coal confirms it is participating in the sale process initiated by the BHP Mitsubishi Alliance (BMA) in relation to the Daunia and Blackwater metallurgical coal mines in Queensland. At this point in time the process is ongoing,” the ASX statement said.
Whitehaven confirmed that the “growth opportunities” mentioned in its FY23 report and yesterday’s ASX statement include the Daunia and Blackwater mines.
“The board will make a decision regarding resumption of the share buy-back at the appropriate time. Whitehaven will continue to keep the market informed in accordance with its continuous disclosure obligations,” Whitehaven said.