BlueScope to waive right to intervene in Appin, Dendrobium sale

As part of the 30 year supply deal negotiated when BlueScope was spun out of BHP in 2002, BlueScope had the right to approve the sale of South32's Illawarra Metallurgical Coal operations - which supplies most of the coal used in steelmaking at Port Kembla.

BlueScope can refuse to approve the sale, but would then have to purchase the coal miner at the same price.

In a statement to the ASX on Tuesday morning, BlueScope said it would approve the sale, three months on from when it was first announced.

"BlueScope has had strong engagement with GEAR and M Resources and looks forward to working with them as the new owners of IMC and as a long-term supplier to the Port Kembla Steelworks," the statement read.

South32 said the timeline of the sale remained on track, with the deal expected to close in the first half of the 2025 financial year,pending approval from the Foreign Investment Review Board.

As part of negotiations between the new owners of the Appin and Dendrobium mines, the contract between the miner and the steelmaker will extend to 2033, with a commitment to support a potential extension of the supply of the Illawarra coal blend beyond 2033.

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