THE US-based mining company Peabody Energy is reportedly the preferred bidder as BHP finalises the sale of three Australian coalmines, including the giant Mount Arthur complex at Muswellbrook.
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While neither company will speak on the record, they have not denied media reports that put Peabody in pole position after two rival bidders from Indonesia dropped out of the race.
Chinese-backed company Yancoal - which bought Hunter Valley Operations and Mount Thorley/Warkworth from Rio Tinto for $US2.69 billion in 2017 - had shown interest early on.
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Given the deterioration in relations between China and Australia, there are doubts such a sale would be approved by the Foreign Investment Review Board given the .
The two Queensland open-cuts, South Walker Creek and Poitrel, are in the Bowen Basin.
They produce coking coal for steelmaking and owned in an 80/20 partnership with Japan's Mitsui.
BHP has another seven mines in Queensland, owned 50/50 with Japan's Mitsubishi, which are not for sale.
The three mines for sale have an estimated price tag of about $2 billion.
Coking coal prices are strong and thermal prices have more than doubled in the past year.
Final bids to BHP were reportedly due by July 31.
Peabody's ability to buy the mines comes after an extraordinary corporate turnaround.
In April 2016, Peabody filed for Chapter 11 bankruptcy protection, having recorded $US4.5 billion in losses in five years. It emerged from Chapter 11 a year later, and recorded a 2017 profit of $US477 million.
Its 2018 result was a $US544 million profit followed by a loss of $US211 million in 2019 and another loss of $1.87 billion last year.
Peabody has 10 US mines, five in Queensland, and the Wambo underground and Wilpinjong open-cuts exporting from Newcastle.
More details of the sale are expected when BHP files its full-year results next week.
BHP recently sold its half share in the Cerrejon thermal coal mine in Colombia to joint-venture partner Glencore in a $700million plus deal.
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