Government rejects bid to split coal from QR sale

Brisbane (Energy Publishing) - The Queensland government has rejected outright, the latest coal industry bid to buy state-owned Queensland Rail’s coal haulage business.

Fourteen coal companies, led by BHP Billiton, Rio Tinto and Xstrata, met in Brisbane yesterday to push their proposal for the coal haulage business to be split from QR’s other freight business before a public float of the operation in 4Q 2010.

The coal companies involved in the proposed bid – claimed to account for almost 99% of the state’s coal output – have hired former New South Wales Liberal premier, Nick Greiner, to try to be ready to table a formal bid to the Labor Queensland government within a month.

State treasury already knocked back an informal approach by BHP Billiton earlier this year.