PERTH (miningweekly.com) – 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.