Sale of US-Australian Coronado coal firm fails

Czech energy investment firm Sev.en Energy has withdrawn from its deal to acquire 51pc of US-Australian coking coal mining firm Coronado Global Resources after the deal was not approved by the Australian government.

The Australian Foreign Investment Review Board failed to approve the deal before the deadline for completion on 22 June, according to seller and private equity firm Energy and Minerals Group. Sev.en does not plan to extend or renegotiate the deal.

The premium hard coking coal price has fallen from around $330/t fob Australia to Argus' most recent assessment of $241.50/t on 25 June since the deal was made public in September 2023.

Coronado operates Australia's Curragh mine complex in Queensland's Bowen basin, which exports high-grade coking coal and some thermal coal. It also operates the Buchanan mine complex that produces low-volatile coking coal and mostly coking coal at the Logan mine complex, both in the US Central Appalachian region. It expects to produce 16.4-17.2mn t of saleable coal in 2024, after selling 15.8mn t in 2023.

By Jo Clarke

Australian metallurgical coal prices ($/t)