While MIM Holdings has expressed interest in the German Creek coal mine in Queensland, it is unlikely such a marriage will eventuate. The confirmation of interest came with the appointment of Vince Gauci to an expanded role with responsibility for Australian operations.
Some analysts believe MIM plans to buy a 46.7% stake in German Creek, valued at around $120 million, from Shell Coal, which is being taken over by Anglo American Corp. The German Creek mine adjoins MIM's Oaky Creek coking coal mine.
However, both RAG and Anglo have pre-emptive rights over Ticor, which owns 26% of the mine, and industry observers suggest Anglo will not give up the German Creek operations.
ILN reported in June that a logical expansion for Southern Colliery - due to run out of coal by around 2004 - was across the Oaky Creek boundary where additional coal could be available up to a fault.
Fault definition in the area was poor which meant there was considerable uncertainty regarding the number of longwall panels that would be available up to the fault. Developing panels across the Oaky Creek boundary would be of greater advantage to the German Creek operations than the MIM operation.
