Consortium of Mining Companies to Bid on Queensland Coal Rail Track Network

Strategic Insights -

A consortium of 13 major mining companies, led by BHP Billiton Ltd. and Anglo American Plc, is set to make a bid for the publicly owned coal rail track network in Queensland, Australia. The consortium's offer, valued at around A$5 billion, is seen as a competitor to the state government's plan to float the rail track network assets on the public market. The bid is to be announced at a press conference, with Citi advising the mining consortium.

Key Takeaways:

  • The consortium, known as the Queensland Coal Industry Rail Group, is made up of 13 major mining companies, including BHP Billiton Ltd. and Anglo American Plc.
  • The bid is valued at around A$5 billion and is seen as a competitor to the state government's plan to float the rail track network assets on the public market.
  • The consortium's offer is to be announced at a press conference, with Citi advising the mining consortium.
  • QCIRG is chaired by former New South Wales state Premier Nick Greiner.
  • The mining consortium is pitching its offer as a superior alternative to the state government's plans.

Statistics:

  • The consortium's bid is valued at approximately A$5 billion.
  • The state government's plan to float the rail track network assets is valued at A$3 billion.
  • The number of mining companies involved in the consortium is 13.
  • Citi is advising the mining consortium on the bid.

Sources:

  • Dow Jones Commodities News Select via Comtex, "Aussie Mining Companies to Bid on Coal Rail Track Network", May 25, 2010.
  • Comtex SmarTrend Alert, as of May 21, 2010, indicating a downtrend for BHP @ $75.96 on April 27, 2010.
  • Comtex SmarTrend Alert, as of May 21, 2010, indicating a downtrend for RTP @ $58.15 on April 19, 2010.