Australian mining giant BHP Billiton has announced that its subsidiary BHP Billiton Mitsubishi Alliance (BMA) has entered into an agreement with mining company New Hope Corporation Limited to acquire 100 percent of its Queensland-located New Saraji Coal Project for a cash consideration of approximately $2.4 billion cash.
New Saraji is an undeveloped metallurgical coal mine located adjacent to BMA's Saraji mine, with an estimated 690 million mt of coal resources, of which 156 million mt are indicated resources, and 534 million mt inferred resources.
The acquisition entitles the purchaser to 10 million mt per year capacity at the Abbott Point coal terminal as it is expanded.
The completion of the acquisition of the New Saraji Project is subject to certain third party consents and normal government approvals.
According to BHP Billition, the acquisition is in line with the company's strategy to accelerate growth in long life, low cost natural resources with a focus on delivering shareholder value.