AURIZON IN PRELIMINARY TALKS TO BUY COAL TERMINAL

Written on the 13 November 2017 by David Simmons

AURIZON IN PRELIMINARY TALKS TO BUY COAL TERMINAL

LISTED freight operator, Aurizon (ASX: AZJ) says it is in talks to acquire a Queensland coal terminal.

The company emphasised the preliminary nature of its talks to acquire the Wiggins Island Coal Export Terminal (WICET) as part of a consortium of buyers.

While there is no certainty that these preliminary discussions will result in a transaction, it has proposed to buy WICET as part of a consortium deal, in which other members would acquire one or more of WICET's source mines.

Aurizon says the acquisition will guarantee the longevity of the coal terminal in Queensland.

"If successful, the consortium's proposal would provide a long-term, sustainable and economic solution for this important state and national infrastructure asset," says Aurizon in an ASX statement this morning.

"This could also incentivise expansion tonnages from existing mines and new mines."

In August, the company announced its FY17 results which were heavily impacted by Cyclone Debbie.

Underlying earnings before interest and tax was $836 million, reflecting the impact of Cyclone Debbie.

The group also reported a net loss after tax of $188 million, reflecting asset impairments and transformation costs.

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Author: David Simmons

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