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Event Wrap: BBMC Luncheon May 2024

04 June 2024 | BBMC Events

A diversified future is a strong future: M Resources

In a first for the Bowen Basin Mining Club, attendees to the May luncheon were introduced to M Group and M Resources – a diversified player in the Bowen Basin and Hunter Valley with aspirations to service the entire global steel value chain.

Founded in 2011 by Matt Latimore and still proudly headquartered in Brisbane with a global reach into major coal markets, M Resources ranks in the top 5 global exporters of coal and holds the position of the world’s largest PCI exporter.

Attendees heard from Andrew Kazakoff, M Group’s General Manager Business Development, who gave an overview of the group’s operations and long-term diversification strategy.

Recent asset investments including a purchase of One Rail Australia and South32’s Illawarra Coal Complex strongly position M Group to provide value to the global steel industry throughout the value chain. The company’s operations and interests cross mining operations, mining services, coal marketing and trading and market intelligence, infrastructure, shipping and logistics, and mine rehabilitation.

While the company’s operations are widespread, for many attendees it was the first time hearing about the breadth of M Group and its influence – right down to their 2023 acquisition of a controlling share of Metarock and its Mackay-based Mastermyne and MyneSight businesses.

The overarching message of the presentation was a that strong future is ahead for the global steel industry, particularly in terms of meeting climate targets.

While this may seem counterintuitive, Mr Kazakoff pointed out that changes needed to meet a 1.5 degree global warming target including the need for more steel through blast furnace route using coal and the increase of electric arc furnaces in the world’s steelmaking capacity – a scenario that relies heavily on scrap steel, an area of growth for the company.

On the back of a strong demand scenario for coking coal for several years to come, Mr Kazakoff believes that the company is strategically positioned to supply their customers for many years to come.

“Our strategy is evidence that we are long-term supporters of the coal market, particularly metallurgical coal. The Bowen Basin has a bright future and we’re very keen to remain in this market and engage with suppliers in this space.”

Commenting briefly on this year’s ‘flurry’ of assets exchanging hands, including Blackwater and Daunia along with the potential sale of Anglo American’s metallurgical coal assets, Mr Kazakoff believes that the action will soon settle to a long-term holding scenario.

“I think we’re entering an era where you’re going to find a long-term holder for some of these assets that are being divested.”

M Resources will continue to be a long term holder of met coal assets with our partners.