BlueScope has waived its pre-emption acquisition rights under the long-term coal supply agreement (CSA) with South32’s Illawarra Metallurgical Coal division (IMC). This move supports the sale of IMC to an entity owned by Golden Energy and Resources Pte Ltd (GEAR) and M Resources Pty Ltd (M Resources). Under the CSA, IMC supplies BlueScope’s Port Kembla Steelworks with a blend of metallurgical coal from its Appin and Dendrobium mines in the Illawarra region (known as the Illawarra Coal Blend).
BlueScope has engaged extensively with GEAR and M Resources and is eager to work with them as the new owners of IMC, continuing the long-term supply relationship with the Port Kembla Steelworks. Demonstrating their commitment to this partnership, GEAR and M Resources have agreed to several enhancements to the CSA. These enhancements include a one-year extension of the contract, now set to expire in 2033, and a commitment to a detailed review process to potentially extend the supply of the Illawarra Coal Blend beyond 2033.