Coal Companies Want To Bid For Queensland Coal Lines

A group of coal producers want to pre-empt Queensland Rail’s impending IPO by bidding for the state’s coal rail network.

The IPO, valued at between A$3 billion and A$4 billion and due to take place in the final quarter of this year, was to have been the largest of 2010, however Queensland Resources Council chief executive Michael Roche said coal producers unanimously agreed that the privatisation was neither in the best interest of the industry nor state taxpayers.

“Coal producers - as owners of the coal track network - have a very strong incentive to ensure a high performing network and to make timely investment in new rail capacity to avoid export bottlenecks,” Mr Roche said in a statement on Monday.

He added “The coal industry is not asking the Queensland government to abandon the public float process. Rather, industry is simply asking for the opportunity to provide an alternative bid and have that industry alternative judged side by side against the public float option.”

Mr Roche’s statement followed a meeting in Brisbane on Monday chaired by former New South Wales premier, Nick Greiner and attended by mining companies including Anglo Coal Australia, BHP Billiton Mitsubishi Alliance (BMA), Ensham Resources, Felix Resources, Jellinbah Resources, Macarthur Coal, New Hope Coal Australia, Peabody Energy, QCoal, Rio Tinto Coal Australia, Vale, Wesfarmers Resources and Xstrata Coal. Mr Greiner previously worked with coal companies to resolve a dispute in the Hunter Valley in New South Wales in 2008.

The QR flotation will include the rail network and trains. Queensland is selling the assets to prop up finances after the recession cut government revenue.