Australian mining company BHP Billiton has announced that BHP Billiton Mitsubishi Alliance (BMA), its joint venture (JV) with Australia-based Mitsubishi Development Pty Ltd, has entered into an agreement to sell its Gregory Crinum hard coking coal mine in central Queensland, to Japan-headquartered Sojitz Corporation for a consideration of A$100 million.
According to BHP’s statement, the decision to sell the mine came after a detailed review that concluded there is potential for another party to realize greater value at the mine.
Gregory Crinum mine is located 60 km north east of Emerald in the Bowen Basin. The mine’s capacity was six million mt of hard coking coal per annum when production ceased and it was placed into care and maintenance in January 2016.
Rag Udd, BMA asset president, stated that the agreement is a great outcome for the parties to the transaction and for the region because it will provide further employment in Emerald, and additional royalties and taxes to the people of Queensland.