Korea Resources Corp and Daewoo International Corp have made a non-binding offer to buy the Australian Whitehaven Coal company. Whitehaven is valued at $3.497 billion and has been on the market since late last year. Final bids are expected to be placed by April 2011.
The two Korean companies are already in a joint venture with Whitehaven Coal in the coal mining group's Narrabri North mine, in New South Wales. The spokesperson of Korea Resources, Kang Shin Young confirmed that the Seoul based group was making the joint bid but gave no information on the value of the bid.
The managing director Tony Haggarty has refused to comment on other companies which have also placed bids. There has been speculation that the Chinese companies Yanzhou Coal and Shenhua Energy are also potential buyers. On February 7, 2011 Whitehaven Coal had asked the short listed parties for completing a more detailed due diligence and submitting binding proposals.
Whitehaven Coal produces metallurgical coal and thermal coal. They have five mining operations in New South Wales and have expansion plans for some of them. With coal prices hitting a two year high thanks to major mines being hit by flooding Whitehaven wants to make the most of its current prospects.