QCT, already partner with BHP in two Queensland coal joint ventures, has been seen as a takeover target since Santos said it was reviewing its 36% stake in the company.

The Queensland company has a 32.4% stake in both the Gregory and Central Queensland Coal Associates joint ventures, while BHP holds a 64.1% interest in Gregory and 52.1% in CQCA. The other major stakeholder in the projects is Japan’s Mitsubishi Corp.

Although Queensland’s coal industry set new records in 1999-2000, QCT ended fiscal 1999 on a low, with fourth quarter shipments falling 16% to 3.82 million tonnes, largely because of ongoing problems at its Kenmare longwall mine, 80km south-east of Emerald in Queensland.

“Shipments from South Blackwater continue to reflect reduced production at the Kenmare underground mine, where longwall mining in the first C seam block ceased in late March in preparation for longwall relocation,” the company said.

The CQCA and Gregory joint ventures shipped 8.18Mt tonnes for the last quarter.