South32's planned sale of its Illawarra coal mines has navigated its last major hurdle.
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The Australian Foreign Investment Review Board has given its approval to the Illawarra Metallurgical Coal (IMC) sale to a joint venture between Singapore-based Golden Energy and Resources and Australia's M Resources.
South32 said it expected to complete the $US1.65 billion sale in the first quarter of the 2025 financial year.
IMC operates the Dendrobium and Appin mines.
An earlier hurdle for the sale was cleared in May when BlueScope waived its right to block the sale.
BlueScope and South32 were both spun out of BHP in 2002; as part of that move the steelmaker was guaranteed a 30-year supply of coal.
As part of that deal, BlueScope had to approve any sale of the IMC operations; if it opted not to waive its rights, it would purchase the business at the same price.
"BlueScope has had strong engagement with GEAR and M Resources and looks forward to working with them as the new owners of IMC and as a long-term supplier to the Port Kembla Steelworks," a May statement from the steelmaker said.
M Resources owner Matt Latimore has been buying up coal assets in Queensland, with a belief that current conditions will remain favourable for 10 to 20 years - enough time to repay the purchase of the mines.
Mr Latimore has intimated that an expansion of Dendrobium could be on the cards.
South32 had plans to extend Dendrobium, but withdrew its $700 million expansion bid in 2022 after being unable to win approval for extended longwall mining underneath the environmentally sensitive drinking water catchment.
In March, Mr Latimore was asked about plans for Dendrobium.
"What I can say now is that when we buy assets, we're looking at assets for the long term, we're looking at assets we can continue to grow," he said.
"We're very keen on growth and long-term focus for the assets we buy."
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
