BHP Billiton has failed to find a buyer for its Gregory Crinum mine in Queensland, Australia, one of ten assets that the diversified miner was trying to divest. In a statement to Reuters, the company said that it had decided not to go ahead with the sale following a strategic review of the mine, “including investigation of possible divestment”.
The mine comprises the Gregory opencast mine, which was closed last year amid falling coal prices, and the Crinum underground mine, which continues to operate. It produced 854,000 t of metallurgical coal this year to June 2013. BHP Billiton owns the mine in a joint venture with Japanese industrial conglomerate, Mitsubishi.
Knock on effect on other coal asset sales
Taking down the for-sale sign at Gregory Crinum could weigh on other coal asset sales. Rio Tinto is currently looking for a buyer of its Clermont mine and a minority stake in its Coal & Allied joint venture, as well as considering working with Glencore Xstrata to cut both companies’ coal production costs in Australia.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/31072013/bhp_billiton_takes_gregory_crinum_coal_mine_off_the_market_coal_news_291/