Coronado looks to expand despite tripling payout to Government
Coronado is pushing ahead with plans for an expansion of its Curragh coal mine in central Queensland despite a massive hike in royalties payments to the State Government.
Coronado chair William Koeck said it had paid $US494 million ($754 million) to the State Government and the government-owned Stanwell Corporation in royalties and rebates.
āThis was more than three times higher than 2021,ā Koeck said.
āThis increase in coal royalties was disappointing news for our Australian operations and we believe has the potential to have negative impacts more broadly.ā
However, the company also benefitted from soaring prices in 2022 and its shareholders received $US700 million ($A1.7 billion) in dividends and considered Australia to be a market with low sovereign risk.
And the impact does not appear to threaten future investment.
The company is among a handful of coal miners considered likely bidders for BHPās Blackwater and Daunia mines and it said its balance sheet gave it the flexibility to buy new assets āshould the right opportunity arise.
āAny potential acquisition must be value accretive and located in well-regulated markets with low sovereign risk, such as North America or Australia,ā he said.
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He said the company was now looking at expansion of the Curragh mine, including underground mining at Curragh North.
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