Whitehaven Coal finalises $6.4bn purchase of Blackwater and Daunia mines

Two major Bowen Basin mines have officially been sold for a whopping $6.4 billion as a major mining company leans into its steel pivot.

Two major Bowen Basin mines have officially been sold to Whitehaven Coal for a whopping $6.4 billion as the mining company leans into its steel pivot.

The massive sale of two Bowen Basin mines has been finalised between BMA and Whitehaven Coal as the latter digs in to metallurgical coal.

Blackwater mine 73km southeast of Emerald and Daunia mine south of Moranbah have been officially sold for a total of $6.4bn (US$4.1 billion) as of April 2.

The sale was announced in October 2024 with a plan to pay US$2.1bn upfront on completion, a further US$1.1bn over the next three years, and potential contingent payments of up to US$900m should the coal price exceed agreed thresholds.

Whitehaven Coal Managing Director and CEO Paul Flynn said the sale was “great news for Queensland”.

“The completion of this acquisition means real certainty for workers at both sites and for the countless businesses that rely on these mines for economic security,” Mr Flynn said.

Paul Flynn, CEO Whitehaven Coal. John Feder/The Australian.

“We’re delighted that 95 per cent of Blackwater and Daunia employees accepted offers at Whitehaven.

“We’re looking forward to welcoming the team of more than 2,100 to Whitehaven and working with the local community and other stakeholders who will remain an important part of both operations.”

An accompanying release said Whitehaven was considering the opportunities in combining Daunia mine with the adjacent project for Winchester South.

An excavator and haul trucks at Daunia mine in Central Queensland. PIC: OWEN JACQUES

The $1bn metallurgical mine was approved in February against strident opposition from environmental leaders, with Environmental Advocacy Central Queensland director Dr Coral Rowston calling the project “an unacceptable threat to ecosystems”.

Blackwater and Daunia’s acquisition makes Whitehaven a leading metallurgical coal producer, with the media release estimating sale revenue driven by 70 per cent metallurgical coal and 30 per cent thermal coal.

Metallurgical or coking coal is a steelmaking essential Whitehaven hopes to continue providing to high-growth markets in Southeast Asia and India.

Originally published as Whitehaven Coal finalises $6.4bn purchase of Blackwater and Daunia mines