BHP has named Whitehaven Coal as the preferred bidder for the Daunia and Blackwater coal mines in the Bowen Basin.

The company in February announced its intention to divest the mines together with joint venture partner Mitsubishi Development.

BMA asset president Mauro Neves said at the time that stepping away from the Blackwater and Daunia operations was consistent with BHP’s strategy to focus its portfolio on the highest quality metallurgical coal assets sought after by global steelmakers to support greater efficiency and lower emissions in their operations.

“Blackwater and Daunia are quality operations run by talented teams, however the lower quality metallurgical coal they produce will mean they will struggle to compete for capital and may be better suited to a different owner,” he said.

Whitehaven’s preferred bidder status was confirmed by BHP in its quarterly activities update to the ASX this morning.

The securities of Whitehaven today went into a trading halt, pending it releasing an announcement some time this week.

Whitehaven managing director and chief executive officer Paul Flynn last month noted that Daunia’s proximity to the planned Winchester South mine, about 30km south-east of Moranbah, made it of obvious interest.

BHP’s divestment of Daunia and Blackwater mines follows its sale last year of its 80 per cent interest in BHP Mitsui Coal (BMC), which held the South Walker Creek and Poitrel mines in the Bowen Basin as well as the undeveloped Wards Well coal project.

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