BHP and Mitsubishi close $4.1bn sale of Queensland coal mines  

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BHP and Mitsubishi close $4.1bn sale of Queensland coal mines  
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BHP and Mitsubishi Development Pty announced Tuesday they have completed the divestment of the Blackwater and Daunia mines to Whitehaven Coal for $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 metallurgical coal joint venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.

Whitehaven Coal has paid BMA $2. billion cash consideration on completion plus a preliminary completion adjustment of $44.1 million for working capital. Whitehaven Coal paid a US$100 million deposit on signing of the asset sale. $1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years after completion and a potential additional amount of up to $900 million in a price-linked earnout may also be payable by Whitehaven Coal to BMA over 3 years, the minerBHP 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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