BHP (LSE: BHP; NYSE: BHP; ASX: BHP) and Mitsubishi Development Pty have completed the sale of the Blackwater and Daunia mines to Whitehaven Coal for US$4.1 billion.
The sale, first announced in October 2023, furthers BHP’s push to exit its coal operations in Queensland, after the world’s largest-listed miner sold out of the South Walker Creek and Poitrel coal mines last year.
Daunia and Blackwater were part of the BHP Mitsubishi Alliance 50-50 metallurgical coal joint venture in Queensland.
Whitehaven paid US$2 billion in cash plus a US$44.1 million adjustment for working capital on closing, in addition to a previously paid US$100 million deposit.
It still owes US$1.1 billion in cash, to be paid over three years. It may also pay an additional amount of up to US$900 million in a price-linked earnout over three years, the miner said in a statement.
BHP has been working towards making a transition to commodities and away from coal-related assets at a time when the focus shifts to industrial metals like copper and nickel.
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