BlueScope Steel today waived its pre-emption acquisition rights under its long-term coal supply agreement (CSA) relating to South32’s Illawarra Metallurgical Coal division (IMC), and supports the sale of IMC to an entity owned by Golden Energy and Resources Pte Ltd (GEAR) and M Resources Pty Ltd (M Resources).

Under the CSA, IMC supplies BlueScope’s Port Kembla steelworks with a blend of metallurgical coal from its Appin and Dendrobium mines located in the Illawarra (Illawarra Coal Blend). 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.

As a sign of their commitment to the relationship, GEAR and M Resources have agreed to a number of improvements to the CSA, consistent with GEAR and M Resources’ plans and aligned to BlueScope’s long-term objectives, including a one-year extension of the contract (to now expire in 2033), along with the commitment to undertake a detailed review process to support a potential extension of the supply of the Illawarra Coal Blend under the CSA beyond 2033.