The past month has seen significant M&A transactions, underscoring the varied strategies adopted by different companies. While some aims to divest entirely from coal, others are keen to strengthen their position in the sector.
Companies
holding diversified portfolios in non-coal commodities will likely continue to
expand their involvement in metals. Meanwhile, pure thermal coal producers are
expected to broaden their presence in the metallurgical industry to ensure
their sustainability in the long term.
Will
Other BMA Assets be on the Market?
BHP has
recently sold its second-tier assets, the Blackwater and Daunia mines, to
Whitehaven for a US$3.2bn package. This move has been long-awaited as BHP was
looking to dispose of second-tier metallurgical assets and focus on
high-quality assets from its BMA operations.
With growing
ESG concerns from shareholders, there are talks that BHP could potentially sell
its other BMA assets as well. On an annual basis, the remaining BMA assets
(Caval Ridge, Goonyella, Peak Downs, and Saraji) can produce around 54Mtpa of
saleable coal (100% basis).