Mining and Heavy Industries

FMG denies Curragh coal bid

Coal. Photo: Shutterstock.

Fortescue Metals Group has denied reports it has submitted an indicative bid to acquire the Curragh coal mine assets from Wesfarmers Resources.

A report from Bloomberg this week indicated FMG, currently 100% invested in iron ore, had made a bid for the Curragh coal mine in Central Queensland.

The report cited a “$1 billion-plus” offers for Curragh, lobbed by FMG and Apollo Global Management, among others, but said representatives from the two reported bidders had declined to comment.

The Australian reported FMG was acting on a “long-held ambition to move into coal,” and was able to lodge a major bid now it had made major cost-cutting inroads in its WA iron ore operations.

FMG rejected the speculation in an ASX release on Tuesday, however.

“Fortescue Metals Group advises that media reports regarding the submission of an indicative bid for Wesfarmers Curragh coal mine assets on Monday 27 February 2017 are incorrect,” the miner said.

“We are focused on debt repayment and capital flexibility, investment in the long term sustainability of our core iron ore assets, creating low cost future growth options and delivery of returns to our shareholders.”

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