Australian coal consortium withdraws bid for Queensland Rail coal rail network

09 Sep 2010

The Queensland Coal Industry Rail Group (QCIRG) comprising heavyweight miners like BHP Billiton, Rio Tinto, Xstrata, Peabody Energy, Anglo American and others it is withdrawing its bid, after having hiked it last month from $4 billion to $4.8 billion, .

It said in a statement today without elaborating further, ''QCIRG is not able to satisfy its, or the Queensland government's, requirements for the bid.''

A consortium of 13 coal companies in Australia have withdrawn their $4.8 billion bid for Queensland Rail's coal rail track network, clearing the way for the state government planned floatation of the railway assets.

''QCIRG appreciates the efforts made by the Queensland state government during negotiations,'' the statement said. ''QCIRG reiterates that coal rail system arrangements are critical for the industry and it will seek to work constructively with the Queensland government on alternative arrangements to realise system efficiency and future growth.''

Queensland Treasurer Andrew Fraser said that the state would go ahead with its planned IPO of the Queensland Rail's coal rail track network known as QR National.

QCIRG had in May 2010 made a $4-billion bid for the rail network in order to prevent the state from making an A$3 billion IPO this year. (See: Australian miners bid A$4.85-billion to prevent Queensland Rail IPO)