Fortescue dismisses reports of Wesfarmers coal bid

Iron ore miner Fortescue Metals Group has denied it is bidding for Wesfarmers’ Curragh coal mine in Queensland.

Bloomberg reported overnight that Fortescue was among bidders for Wesfarmers’ 100%-owned Curragh operation, which primarily produces metallurgical coal.

However, Fortescue today told the ASX that the reports it submitted an indicative bid for Curragh were incorrect.

“We are focused on debt repayment and capital flexibility, investment in the long-term sustainability of our core iron ore assets, creating low cost future growth options and delivery of returns to our shareholders,” Fortescue said in the statement.

“Fortescue is aware of its continuous obligations to the ASX and the ongoing commitment to update the market, if and when, there are matters to disclose.”

The Bloomberg report also stated that Apollo Global Management was bidding for Wesfarmers’ stakes in the Curragh and Bengalla mines and could offer as much as $2 billion for the assets.

Curragh has capacity to produce 8.5 million tonnes of metallurgical coal and 3.5 million tonnes of thermal coal each year, according to Wesfarmers.

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