BHP Billiton Mitsubishi Alliance (BMA), which is made up of joint venture partners BHP and Mitsubishi Development Pty Ltd (Mitsubishi), has sold its Gregory Crinum Mine in central Queensland (Australia), to Japanese company Sojitz Corp. for AUS$100 million.
In addition to the sale of the mine to Sojitz, BMA will provide appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz. The net impact from this funding is not material for BHP or Mitsubishi.
Gregory Crinum is a hard coking coal mine located 60 km northeast of Emerald in the Bowen Basin. The site comprises the Crinum underground mine, Gregory opencast mine, undeveloped coal resources and onsite infrastructure including a coal handling and preparation plant, maintenance workshops and administration facilities.
Gregory Crinum mine’s capacity was 6 million t of hard coking coal per annum when production ceased and it was placed into care and maintenance in January 2016.
BMA made the decision to sell the mine after a detailed review that concluded there is potential for another party to realise greater value at the mine.
BMA Asset President, Rag Udd, said: “This is a great outcome for the parties to the transaction and for the region. This will provide further employment in Emerald, and additional royalties and taxes to the people of Queensland”.
“We wish Sojitz well in its plans to recommence production at the site,” Udd said.
According to BMA, the completion of the sale is subject to the fulfilment of conditions precedent including customary regulatory approvals, which could take several months. During the approval period BMA and Sojitz will work together to facilitate a smooth transition.