Whitehaven Coal Limited (ASX:WHC) is understood to have pitched its bid for BHP Group Limited (ASX:BHP)'s Daunia and Blackwater coking coal assets at $3.5 billion, with offers for the Queensland mines due earlier this week. The rumoured bid is slightly higher than the $3.3 billion valuation ascribed to the assets by UBS in a research note issued in mid-September, with the broker saying at the time Whitehaven was looking like the frontrunner to buy the assets, which are owned by BHP in a joint venture with Mitsubishi Development Corp. Other potential buyers include Yancoal Australia Ltd. (ASX:YAL), Stanmore Resources Limited (ASX:SMR), BUMA Australia Pty Ltd. and Peabody Energy Corporation (NYSE:BTU).

Whitehaven has confirmed previously it is bidding for both of the mines in Queensland's Bowen Basin, and with more than $2 billion of cash on its balance sheet has plenty of balance sheet depth to do so. The coal miner has also told shareholders it would only acquire the assets if a deal did not dilute its earnings. Whitehaven would not confirm or deny the rumoured offer.