Macarthur Coal

Macarthur Coal was an Australian mining company based in Queensland and focused on the production of metallurgical coal. Incorporated in October 1995, the company was founded by Ken Talbot, who later served as its chief executive. Its operations were located in Queensland's Bowen Basin, one of Australia's important coal-producing regions. The company's principal commercial specialisation was low-volatile pulverised injection coal, a metallurgical-coal product used in steelmaking. Unlike a diversified energy business serving a broad domestic market, Macarthur Coal was oriented heavily toward export production: the coal it produced was exported from Australia. This positioned the company within the international steelmaking raw-material supply chain rather than the electricity-generation coal market. Macarthur Coal developed and operated open-cast mining assets in the Bowen Basin. Its major projects included Coppabella and Moorvale, in which it held a 73.3% ownership interest. Coppabella produced its first coal in October 1998. In 2009, the mine produced 2.4 million tonnes of coal from 2.9 million tonnes of material mined. Moorvale began producing coal in March 2003 and produced 2.2 million tonnes of coal from 2.9 million tonnes of material in 2009. These operations formed the core of the company's producing asset base during the late 2000s and early 2010s. The company was also pursuing growth through new mine development. In 2010 it was opening a third mine at Middlemount, with an initial target of 1.8 million tonnes of material per year. In 2011, Codrilla at Valkyrie was selected for development, extending Macarthur Coal's planned project pipeline beyond its established mines. The company's reserve position was subsequently revised upward: in May 2011, it announced a 38% increase in estimated coal reserves to 2.26 billion tonnes. Macarthur Coal became involved in a series of strategic transactions as the Australian coal sector attracted acquisition interest. During the first half of 2010, it made an offer for Gloucester Coal, but the offer was unsuccessful. Later, New Hope and Peabody Energy made offers for Macarthur Coal itself; those approaches were rejected at the time. The company's operations were also affected by the 2010–2011 Queensland floods, after which a force majeure declaration was in place for the five months preceding 28 April 2011. Peabody Energy ultimately acquired Macarthur Coal in late 2011. Following that acquisition, Macarthur Coal ceased to operate as an independent company and is therefore treated as a defunct brand or corporate entity. Its historical significance lies in its concentrated Bowen Basin asset portfolio, its focus on low-volatile pulverised injection coal for steelmaking, and its role in the consolidation of Australia's export-oriented coal industry.

Macarthur Coal was incorporated in October 1995 as a Queensland-based Australian mining company founded by Ken Talbot. The company concentrated on metallurgical coal production in the Bowen Basin, with particular emphasis on low-volatile pulverised injection coal used in steelmaking. Its business model was strongly export-oriented, with essentially all of its coal production shipped from Australia rather than directed to a domestic power-generation market. The company built its operating base through open-cast mines and associated development projects. Coppabella produced its first coal in October 1998. In 2009, it produced 2.4 million tonnes of coal from 2.9 million tonnes of material mined. Moorvale began producing in March 2003 and produced 2.2 million tonnes of coal from 2.9 million tonnes of material in 2009. Macarthur Coal maintained a 73.3% interest in each of its major mine projects. During 2010, Macarthur Coal sought to expand through a proposed offer for Gloucester Coal, but the offer was unsuccessful. The company itself then became the subject of acquisition interest when New Hope and Peabody Energy made offers that were rejected at that stage. At the operational level, the 2010–2011 Queensland floods caused disruption, and a force majeure declaration applied during the five months before 28 April 2011. Macarthur Coal continued developing its resource base and project pipeline. Middlemount was being opened as a third mine, with an initial target of 1.8 million tonnes of material per year. In 2011, Codrilla at Valkyrie was selected for development as a fourth mine. That same year, the company announced that estimated coal reserves had increased by 38% to 2.26 billion tonnes. Peabody Energy acquired Macarthur Coal in late 2011. The acquisition brought Macarthur Coal's Bowen Basin assets and metallurgical-coal operations under Peabody's ownership and ended Macarthur Coal's independent corporate existence. The company is consequently best understood as a historical Australian coal brand and former mining operator rather than an active standalone business.

• 2011

  Reserves estimate increased

  [1]Macarthur Coalen.wikipedia.org

  Macarthur Coal reported a 38% increase in estimated coal reserves to 2.26 billion tonnes.

• 2011

  Acquired by Peabody Energy

  [1]Macarthur Coalen.wikipedia.org

  Peabody Energy acquired Macarthur Coal in late 2011.

• 2010

  Gloucester Coal offer unsuccessful

  [1]Macarthur Coalen.wikipedia.org

  Macarthur Coal made an unsuccessful offer for Gloucester Coal during the first half of the year.

• 2003

  Moorvale begins coal production

  [1]Macarthur Coalen.wikipedia.org

  The Moorvale open-cast mine produced its first coal in March 2003.

• 1998

  Coppabella begins coal production

  [1]Macarthur Coalen.wikipedia.org

  The Coppabella open-cast mine produced its first coal in October 1998.

• 1995

  Company incorporated

  [1]Macarthur Coalen.wikipedia.org

  Macarthur Coal was incorporated in Queensland, Australia, in October 1995.

An export-oriented Australian coal producer focused on low-volatile pulverised injection coal for steelmaking.

• Metallurgical coal

  Low-volatile pulverised injection coal

  Macarthur Coal specialised in low-volatile pulverised injection coal, a metallurgical-coal product used in steelmaking. The company's production was primarily directed to international export markets, making this coal its defining commercial offering.

• Open-cast coal mining · 1998

  Coppabella mine production

  Coppabella was one of Macarthur Coal's principal Bowen Basin mining operations. It began producing coal in October 1998 and remained part of the company's core producing asset base during the period described in the available historical material.

• Open-cast coal mining · 2003

  Moorvale mine production

  Moorvale was a major Macarthur Coal open-cast mine in the Bowen Basin. First coal was produced in March 2003, and the mine supplied metallurgical coal for the company's export-focused business.

• 2011

  Expansion of Bowen Basin mine portfolioStrategy

  Background

  Macarthur Coal was developing Middlemount and had selected Codrilla at Valkyrie for development as it expanded its Queensland project pipeline.

  Action taken

  The company proceeded with Middlemount development and selected Codrilla for development.

  Aftermath

  The plans represented a proposed expansion beyond the Coppabella and Moorvale producing mines; the available material does not document the eventual operating outcome of each project.

  Source

• 2011

  Acceptance of Peabody Energy acquisitionM&A

  Background

  Macarthur Coal had previously rejected offers from New Hope and Peabody Energy, but Peabody later acquired the company.

  Action taken

  Peabody Energy acquired Macarthur Coal in late 2011.

  Aftermath

  Macarthur Coal ceased to exist as an independent company and its business became part of Peabody Energy.

  Source

• 2010

  Offer for Gloucester CoalM&A

  Background

  Macarthur Coal pursued growth through a proposed acquisition of Gloucester Coal during the first half of 2010.

  Action taken

  The company made an offer for Gloucester Coal.

  Aftermath

  The offer was unsuccessful.

  Source

1. 1Macarthur Coalen.wikipedia.org