QCoal pays $300m in dividends to founder Chris Wallin on $582m profit

Secretive Queensland coal billionaire Chris Wallin hauled in $300m in dividends from his privately-owned QCoal on the back of record coal prices.

QCoal Group has an interest in four coal mines in Queensland’s Bowen Basin, producing a mix of metallurgical and thermal coal.

Secretive Queensland coal billionaire Chris Wallin raked in $300m in dividends from his privately-owned QCoal, as the soaring price of coal price continues to lift the wealth of Australia’s mining barons.

Mr Wallin’s QCoal Group has an interest in four coal mines in Queensland’s Bowen Basin, producing a mix of metallurgical and thermal coal, and rode record prices last financial year to book a $582.1m after-tax profit for the year, according to documents filed with the corporate watchdog.

The result is a $491m improvement on the previous financial year, and Mr Wallin was paid $300m in dividends on the back of the company’s soaring profits. QCoal declared and paid $150m in dividends during the financial year, and another $150m on the back of the full-year result.

Mr Wallin’s payday will be on one of the biggest dividend cheques received by any member of The List – Australia’s Richest 250 this year. His wealth was estimated at $1.89bn when the 2022 edition was published by The Australian in March.

QCoal’s net profit this year was delivered on the back of earnings before interest, tax, depreciation and amortisation of $860m.

Chris Wallin, mining richlister and QCoal boss. Picture: Steve Pohlner

QCoal’s mines export mostly coking coal used by steel mills, and enjoyed boom prices as metallurgical coal jumped to more than $US600 a tonne shortly after Russia’s invasion of Ukraine in February.

Since then the value of coking coal has fallen sharply, but still sits well above long-term averages. Thermal coal prices have also fallen from record highs of around $US450 a tonne in early September to current levels closer to $US320 a tonne.

QCoal’s annual accounts did not put a figure on its financial-year production, or the mix of coal it sells. But its extraordinary profits are likely to be based on lower output than the previous financial year, given the battering taken by the Queensland coal sector from heavy weather during the year.

BHP’s Queensland coal operations produced 10 per cent less coal for the financial year, at 37 million tonnes, but the mining giant BMA’s mines booked $US9.5bn ($14.8bn) in earnings before interest, tax, depreciation and amortisation – up from $US288m the previous year.

QCoal paid $92.1m in royalties to the Queensland government during the year, its financial filings show, and $204.4m in corporate taxes.

The company’s results underline the bumper year for Australia’s coal barons.

Last month Jellinbah Group, the private miner founded by little-known Brisbane billionaire Sam Chong, lodged its financial results, declaring a $1.92bn profit for the last financial year and handing over $1.7bn in dividends to its owners.

QCoal Group's Sonoma mine produces up to four million tonnes of hard coking and thermal coal annually.

The company profit was almost 700 per cent above the $240.4m profit from the previous year, with Jellinbah paying a $1.2bn dividend on October 31, on top of a $525m interim dividend paid in late March – all of which, according to the accounts, was fully franked after Jellinbah paid more than $820m in corporate taxes for the year.

Jellinbah owns its Queensland mines with subsidiaries of Japanese group Marubeni and global mining giant Anglo-American.

Mr Wallin has made his fortune in Queensland after a career in the state’s Mines Department as chief coal geologist, where his job was to discover coal deposits throughout Queensland.

He started QCoal in 1989, and the group has mines in Queensland’s Bowen Basin and a collection of listed mining shares and other exploration assets.

QCoal’s mines include the $1.76bn Byerwen coal mine, which is capable of producing up to 10 million tonnes of hard coking coal per year. Japanese firm JFE steel is an investor in the mine alongside QCoal. Its nearby Sonoma Mine produces up to four million tonnes of hard coking and thermal coal annually.

Originally published as QCoal pays $300m in dividends to founder Chris Wallin on $582m profit