Queensland Coal Producers Will Make Offer For Rail Network

Queensland’s coal producers plan to lodge an offer with the state government to buy its rail network.

Former NSW state governor, Nick Greiner, who yesterday chaired a meeting of the producers’ trade forum, the Queensland Resource Council, said today that “there will be a progress meeting in three weeks, toward the end of the month” and that an offer will then be made to the government.

Yesterday, the Queensland Resource Council suggested that the Queensland Rail IPO be delayed and that the state government look at other options before proceeding later this year.

Queensland Rail is Australia’s largest transporter of coal and it is estimated that the IPO will raise A$3 billion for the government after the recession cut state revenues.

Mr Freiner said that the producers had already appointed Citigroup Inc. and Freehills as advisors to the bid and that they were “absolutely committed” to making a better bid than the IPO.