South32 still hunting for a buyer for Eagle Downs

25th July 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


Font size: - +

PERTH ( – Diversified miner South32 is still hunting for a buyer for its interest in the Eagle Downs metallurgical coal project, in Queensland.

South32 in 2018 completed the acquisition of a 50% interest in Eagle Downs project, paying A$106-million up-front, with a further A$27-million payable three years after the transaction. A coal-price-linked production royalty was also implemented, capped at A$80-million.

South32 and its joint venture partner Aquila Resources, a subsidiary of China’s largest steel producer, BaoWu, in December 2020 completed a feasibility study on the project. While the study indicated the potential for a long life operation, the expected returns did not support the allocation of capital under South32’s capital management framework, prompting the miner to shelve the project.

South32 on Monday said that all of the offers received for its 50% interest in the Eagle Downs project to date were not acceptable, however, the company was still seeking potential divestment opportunities.

In the meantime, the asset remains under care and maintenance.

Edited by Creamer Media Reporter


The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?