BHP is understood to have attracted between 15 and 25 parties interested in its two Queensland coal mines for sale through investment bank Macquarie Capital.
The global miner was understood to have reached out to parties mid-March and has now received expressions of interest in the initial stages of the sale process.
It is understood that suitors have been offered an extensive amount of information on the offering early on to assess the assets.
First round offers are expected to be due in about six to eight weeks.
DataRoom understands that among the possible buyers are the Australian-listed Stanmore Coal, majority owned by Indonesia’s Sinar Mas Group – the controlling company of Golden Energy in Singapore.
Indian conglomerate JSW is believed to be taking a look, while BUMA Australia, part of the Delta Dunia Group, is thought to be interested.
Peabody Energy, Coronado Global Resources, Whitehaven Coal and New Hope Coal are also all logical candidates for an acquisition.
All of the coal miners right now are flush with cash on the back of soaring coal prices linked to the Ukraine-Russia conflict that has stemmed the flow of fossil fuels for energy.
Whitehaven Coal in October told the market it could return more than $1bn to shareholders in the year in line with its policy of returning 20-50 per cent of net profit to shareholders, as it booked a $2bn annual net profit.
On offer are two Queensland coal mines, Daunia and Blackwater, worth a combined $2bn.
Blackwater produces thermal coal as well as metallurgical coal while Daunia produces metallurgical coal.
They are two of nine metallurgical coalmines in Queensland’s Bowen Basin that are part of the joint venture, split 50-50 between BHP and Mitsubishi Development.
Some are betting that Coronado Global Resources buys Blackwater, given its operations, including workforce, roads and ports, are close by, while Peabody Energy was the most likely acquirer of Daunia.
Stanmore Coal bought an 80 per cent interest in Queensland metallurgical coalmining business BHP Mitsui Coal for $US1.2bn last year that includes the Poitrel and South Walker Creek operations, Red Mountain Infrastructure and the Wards Well development.
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