BHP Billiton Mitsubishi Alliance (BMA) joint venture partners BHP and Mitsubishi Development Pty Ltd. have entered into an agreement to sell the Gregory Crinum mine in central Queensland to Sojitz Corp. for A$100 million. In addition to the sale of the mine to Sojitz, BMA will be providing appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz.
Gregory Crinum is a hard-coking coal mine located 60 kilometers (km) northeast of Emerald in the Bowen Basin. The site 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.
Gregory Crinum mine’s capacity was 6 million metric tons per year (mt/y) of hard-coking coal when production ceased and it was placed into care and maintenance in January 2016. BMA said it made the decision to sell the mine after a detailed review that concluded there is potential for another party to realize greater value at the mine.
“This is a great outcome for the parties to the transaction and for the region,” BMA Asset President Rag Udd said. “This will provide further employment in Emerald, and additional royalties and taxes to the people of Queensland.”
Completion of the sale is subject to customary regulatory approvals, which could take several months. During the approval period, BMA and Sojitz will work together to facilitate a smooth transition.