BHP Billiton Mitsubishi Alliance (BMA) and joint venture partner BHP and Mitsubishi Development Pty Ltd (Mitsubishi), have entered into an agreement to sell the Gregory Crinum Mine to Sojitz Corporation for AU$100 million.
BMA is also set to provide appropriate funding for rehabilitation of existing areas of any (environmental) disturbance at the site, with all rehabilitation liabilities then transferred to Sojitz. Gregory Crinum is a coal mine located 60 km north east of Emerald in the Bowen Basin in central Queensland.
The site comprises the Crinum underground mine, Gregory open-cut mine, undeveloped coal resources, and on-site infrastructure. The on-site infrastructure includes a coal handling and preparation plant, maintenance workshops and administration facilities. Gregory Crinum Mine’s capacity was six million tonnes of hard coking coal per annum when production ceased and it was placed into care and maintenance in January 2016.
The decision was made for BMA to sell the mine after “a detailed review that concluded there is potential for another party to realise greater value at the mine,” BHP announced in a statement.
“This is 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,” voiced BMA Asset President Rag Udd on the subject.
“We wish Sojitz well in its plans to recommence production at the site,” Mr Udd said in conclusion.
The conclusion of the sale is subject to the fulfilment of conditions preceding it, including customary regulatory approvals, of which could take several months.
During the approval period, BMA and Sojitz have announced that they will work together to facilitate a smooth transition of the mine.