Massive $105m deal for humble mining dongas
A massive deal has been approved for a foreign firm to buy four mining facilities in Australia.
A massive deal has been approved for a foreign firm to buy four mining donga villages with more than 1,300 bedrooms – coming in over $78,000 a room.
New York Stock Exchange listed Civeo Corporation, whose annual revenue last year was over a billion Aussie dollars, has confirmed its purchase of four villages in Queensland’s Bowen Basin off a private seller.
MORE: Aussie capital named top two city in the world
Big Aus bank slashes rates weeks before RBA decision
MORE: Quirky solution to housing crisis
Artist builds Aus first aircrete dome home
Civeo Corp CEO Bradley Dodson said the deal was approved “earlier than expected”.
The $105m deal equates to just over two years of projected revenue that the Bowen Basin deal was expected to bring in for the US-based firm.
Mr Dodson said it would “add annualised revenue and EBITDA of approximately $50m and $27m, or approximately US$32m and US$17m, respectively” to Civeo Corporation’s numbers.
In a statement to NYSE, the firm said the purchase gives the firm “unmatched presence and capabilities” in what it said was “the world’s premier metallurgical coal basin”.
The deal includes ongoing contracts with new and existing metallurgical coal producers under take-or-pay contracts – which means the firm will get paid whether companies use the dongas fully or not.
MORE: See the Aussies who put their pets first when buying a house
Un-beer-lievable: SEQ costlier than Melbourne for housing, food, grog
The firm already has a strong Queensland presence with Coppabella Village between Moranbah and Nebo, Dysart Village, Middlemount Village, Moranbah Village, and Nebo Village; two in New South Wales – Boggabri Village and Narrabri Village; and one in Western Australia – Karratha Village.
All up before this deal, Civeo owned and operated 28 lodges and villages across Australia and North America with about 27,500 rooms, and also provides hospitality services at 22 customer-owned locations with over 18,000 rooms.
Civeo Corporation operates in the hospitality services zones within the resource sector, accommodating hundreds or thousands of workers in long-term and temporary accommodation, providing food, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications, security and logistics.
Mr Dodson said “we have updated Civeo’s 2025 guidance to reflect the expected revenue and Adjusted EBITDA contributions from these newly acquired villages and look forward to deepening our relationships with our customers in the Bowen Basin.”
Originally published as Massive $105m deal for humble mining dongas