Whitehaven coal
2 April 2024
Whitehaven Coal completes transformational acquisition of Blackwater and Daunia
Whitehaven Coal (Whitehaven) has today completed the acquisition of 100% of the Blackwater and Daunia metallurgical coal mines in Queensland’s Bowen Basin.
The acquisition of these high-quality, long-life assets is a significant milestone for Whitehaven that will effectively double the size of its business and secure Queensland jobs for decades to come.
Whitehaven Coal Managing Director and CEO, Paul Flynn, said the company is proud to be the new owner of Blackwater and Daunia.
“This is a great day for our business and the workforces at Blackwater and Daunia, and great news for Queensland,” added Mr Flynn.
“Whitehaven is a proudly Australian company and we’re committed to the Australian coal sector for the long haul. 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.
“We’re delighted that 95% 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.
Whitehaven has a 20-year history of helping regional communities thrive in northern NSW and the company is committed to providing the same long-term investment and support for its Queensland employees and the local communities around Blackwater and Daunia.
“We understand the importance of mining to regional areas and we are proud to have made this significant investment into regional Queensland,” Mr Flynn said.
“We have a proven track record of supporting local jobs and local businesses, as well as directly investing in important community causes and empowering Aboriginal and Torres Strait Islander people.”
“This local focus is part of our DNA and Queenslanders can be confident we’ll bring that same approach with us to the Bowen Basin.”
Announced in October 2023, the acquisition of Blackwater and Daunia transforms Whitehaven into a leading metallurgical coal producer, repositioning its portfolio to deliver sales revenue driven by approximately 70% metallurgical coal and approximately 30% thermal coal.
Metallurgical coal is a critical component in steelmaking and this acquisition will allow both Whitehaven and Queensland to play a leading role in helping to meet strong current and anticipated global steel demand for many years to come, particularly in high-growth market regions such as India and Southeast Asia.
The acquisition will deliver Whitehaven geographic and operational diversification benefits and provides attractive growth opportunities in Queensland’s Bowen Basin, including synergies with Whitehaven’s Winchester South development project.
Whitehaven officially takes operational control of Blackwater and Daunia on Wednesday, 3 April 2024.
Whitehaven’s thermal coal business and the people that support also remains strategically important as the company continues to provide much-needed coal products to support the global energy transition.
High quality thermal coal has an important role to play in supporting global energy security during the decarbonisation transition in the coming decades, particularly in Asia where there continues to be strong and growing demand for its use in high-efficiency, low-emissions coal-fired power stations.
- A link to the market announcement can be found here.
- The original announcement from October 2023 can be found here.