Xenith Completes Buy-Side Assessment of Anglo’s Iconic Callide Coal Mine

In 1944, the Callide open-cut coal mine near Biloela in Central Queensland was created when Thiess Brothers amalgamated several leases into a single mining entity.

Since its inception, the Callide mine has continuously supplied low-sulphur, sub-bituminous thermal coal to the Queensland domestic electricity generation market and, in more recent times, for the production of alumina.

In 2012, mine owners Anglo American placed the Callide mine on the market.
Batchfire Resources, a private Brisbane-based company, engaged Xenith to assist with a range of geological, engineering and financial analysis tasks as part of their bid for Callide. Following on from work of a similar nature, this project once again highlighted Xenith’s extensive capability across a broad range of disciplines.

In October 2016, Batchfire purchased Callide off Anglo American.

Following this purchase, feedback from Batchfire was positive and highlighted the breadth and depth of Xenith skills and experience in a dynamic working environment.
Project director and manager of the Hunter Valley office, David Lennard, was singled out for special mention. David’s project management skills, extensive industry knowledge and experience were essential to the success of this project.

Batchfire Resources executive director Edek Choros said: “David played a pivotal role in Batchfire’s purchase of Callide Mine.

“As a trusted adviser, David formed an independent view of the project, generated multiple development options for economic modelling and was extensively involved in the due diligence of the asset.

“David presented the new operating strategy to prospective investors, their due diligence teams and key external stakeholders, successfully delivering a credible and robust business case. This work contributed to Batchfire securing the $100m of capital investment required to purchase Callide Mine. Since the purchase, David has continued to be involved in the implementation of the new operating strategy.”

As a direct result, feedback from Batchfire’s executive director contributed towards Xenith winning Australia’s Mining Monthly magazine Mining Consultant of the Year for 2018.

Xenith continues to work with Batchfire as a trusted adviser.

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