BHP Billiton Mitsubishi Alliance to offload QLD coal mine for $100m

BHP Billiton Mitsubishi Alliance (BMA) has agreed to sell the Gregory Crinum coking coal mine in Queensland to Japan’s Sojitz Corp for $100 million.

Gregory Crinum, 60km northeast of Emerald in the Bowen Basin, 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.

The mine’s capacity was 6Mt/y when production ceased and it was placed on care and maintenance in January 2016.

BMA decided to sell the mine after a review that concluded there was potential for another party to realise greater value at the mine.

Rag Udd, BMA asset president, said the deal was 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,” Udd said.

“We wish Sojitz well in its plans to recommence production at the site.”

BMA will also provide funding for rehabilitation of existing areas of disturbance at the site, with all liabilities for these activities transferred to Sojitz.

The deal is subject to conditions that include regulatory approvals, which BMA stated could take several months.

BMA and Sojitz will work together to facilitate a smooth transition during the approvals process.

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