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Coal|Contractor|Mining|Resources
Coal|Contractor|Mining|Resources
coal|contractor|mining|resources

Stanmore seeks $1.1bn loan for BHP mine bid

15th September 2023

By: Bloomberg

  

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An Australian bidder for one of BHP Group’s Queensland mines is in talks with private credit funds to help finance $1.1-billion of borrowings for its acquisition.

A term sheet in circulation shows Stanmore Resources is seeking to borrow $750-million via private credit, according to people familiar with the matter. The coal producer is also in talks to secure a $350-million bank loan, said the people, who asked not to be named because the matter is confidential.

Click here for more details on the proposed terms

Stanmore declined to comment when contacted by Bloomberg.

BHP announced earlier this year it planned to divest two of its coal mines in Queensland, Daunia and Blackwater, saying they’d struggle to compete for capital as the company changes tack.

Indonesian mining contractor PT Bukit Makmur Mandiri Utama and Stanmore made initial bids for at least one of them and private credit funds were considering jumbo loans to help with the financing, Bloomberg reported late last month.

Stanmore already relied on private borrowing in 2021 to partially fund its acquisition of BHP’s 80% stake in a coal operation joint venture with Mitsui & Co. in Bowen Basin, Queensland.

Edited by Bloomberg

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