Australian mining giant BHP Billiton has announced that its 50 percent-owned joint venture BHP Billiton Mitsubishi Alliance (BMA) has completed the previously-announced 100 percent acquisition of the Queensland-located New Saraji Coal Project from mining company New Hope Corporation Limited for a cash consideration of AU$2.45 billion (about US$2 billion), with BHP Billiton contributing approximately US$1 billion.
Following the purchase, the Project will be known as Saraji East.
The acquisition includes Mining Lease Application (MLA) 70383, Exploration Permit for Coal (EPC) 837 and a port user contract entitlement of 10 million mt per year capacity at Abbot Point Coal Terminal as it is expanded.
The acquisition is in line with BHP Billiton's strategy to continue to build on its position within the Bowen Basin, to accelerate its growth and to bring new production to meet the needs of its customers. According to BHP Billiton's Coal President Dave Murray, "Saraji East could potentially deliver significant synergies due to its proximity to BMA's existing Saraji mine."
The exploration and evaluation program for Saraji East is to be started immediately.