BHP and Mitsubishi close $4.1-billion coal mine sale

Australia

SYDNEY, April 4, 2024 – BHP and Mitsubishi Development Pty have completed the planned divestment of the Blackwater and Daunia metallurgical coal mines to Australian mining company Whitehaven Coal, the companies announced on Tuesday.

Total cash consideration for the transaction will be up to USD 4.1 billion plus other agreed adjustments.

Blackwater and Daunia, located in Queensland’s Bowen Basin, were held by BHP and Mitsubishi through their 50-50 joint venture BHP Mitsubishi Alliance (BMA), Australia’s largest producer of seaborne metallurgical coal and owner of the Hay Point Coal Terminal.

The deal, first announced in October 2023, will double the size of Westhaven’s business and bring the company’s output to approximately 70% metallurgical coal. The shift intends to capitalise on strong anticipated demand for steel in high-growth Asian markets.

Photo by Albert Hyseni