BHP’s divestment of its Daunia and Blackwater coal mines in Queensland, leaving Whitehaven Coal to take full ownership.
The two mines were part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint venture.
Whitehaven Coal has been in discussions with BHP and BMA since late last year when it was announced the company would acquire the mines for $US4.1 billion ($6.4 billion).
“This is a significant milestone for Whitehaven that transforms us into a leading metallurgical coal producer and will deliver benefits for all of our stakeholders,” Whitehaven Coal managing director and chief executive officer Paul Flynn said.
“I thank the teams at Whitehaven, BMA, BHP and Mitsubishi and our advisors who have worked hard to help us complete this strategically important acquisition.
“We are well placed to execute a smooth transition and to integrate the Daunia and Blackwater mines into the Whitehaven portfolio.”
Whitehaven has paid BMA $US2 billion cash consideration, plus a preliminary completion adjustment of $US44.1 million. It has also paid a $US100 million deposit.
The total cash consideration for the transaction will be up to $US4.1 billion plus the final completion adjustment amount.
“We are excited to welcome the teams at Daunia and Blackwater into our business and we look forward to working with the local community and other stakeholders who will remain an important part of our operations,” Flynn said.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
