BHP Billiton Mitsubishi Alliance (BMA) joint venture partners BHP and Mitsubishi Development Pty Ltd (Mitsubishi) have entered into an agreement to sell the Gregory Crinum Mine in central Queensland, to Sojitz Corporation for A$100 million.
In addition to the sale of the mine to Sojitz, BMA will be providing 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 north east of Emerald in the Bowen Basin. The site comprises the Crinum underground mine, Gregory open cut mine, undeveloped coal resources and on-site infrastructure including a coal handling and preparation plant, maintenance workshops and administration facilities.
Gregory Crinum Mine’s capacity was six million tonnes 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,” Mr Udd said.
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.