Bandanna Energy sale hit by cropping land policy in Queensland
People familiar with the bid process said, out of the five tenements on the block by Bandanna Energy, two may fall under crop land.
By Nisha Poddar, 
| Updated:
| Updated: Australian coal asset company, Bandanna Energy’s billion dollar plus sales process has hit a roadblock, the strategic cropping land policy of Queensland may restrict mining on a part of their coal asset which is up for sale, sources with direct knowledge said.
This has slowed down the bid process for the coal reserves of Bandanna Energy for which three Indian companies, GMR, NTPC and Aditya Birla’s group company Essel Mining has been short listed.
“This calls for a thorough study of the coal assets” an official from one of the interested parties in Bandanna coal said. Sources point out that the Indian companies are currently carrying out a due diligence process on the coal reserves of Australia-listed company Bandanna Energy.
People familiar with the bid process said, out of the five tenements on the block by Bandanna Energy, two may fall under crop land and may not be allowed to mine. “The issue is still under consultation. Not just Queensland, other Australian states like New South Wales are also considering the implementation of cropping land policy.” an industry expert based in Australia said. The miners in Queensland are lobbying against the policy and still hoping for some relief.
“This is a political risk, most of the coal mines sold in the recent past have been from Queensland. Indian companies may have to re-visit what they have bought” a senior investment banker said on condition of anonymity.
Bandanna Energy is estimated to have a total coal reserve of over 1.4 million tonnes in the Bowen and Galilee Basin in Queensland. The company owns about 16 exploration permits for mining coal in Australia.
This has slowed down the bid process for the coal reserves of Bandanna Energy for which three Indian companies, GMR, NTPC and Aditya Birla’s group company Essel Mining has been short listed.
“This calls for a thorough study of the coal assets” an official from one of the interested parties in Bandanna coal said. Sources point out that the Indian companies are currently carrying out a due diligence process on the coal reserves of Australia-listed company Bandanna Energy.
People familiar with the bid process said, out of the five tenements on the block by Bandanna Energy, two may fall under crop land and may not be allowed to mine. “The issue is still under consultation. Not just Queensland, other Australian states like New South Wales are also considering the implementation of cropping land policy.” an industry expert based in Australia said. The miners in Queensland are lobbying against the policy and still hoping for some relief.
“This is a political risk, most of the coal mines sold in the recent past have been from Queensland. Indian companies may have to re-visit what they have bought” a senior investment banker said on condition of anonymity.
Bandanna Energy is estimated to have a total coal reserve of over 1.4 million tonnes in the Bowen and Galilee Basin in Queensland. The company owns about 16 exploration permits for mining coal in Australia.
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