BHP Group Limited BHP announces divestment of Blackwater and Daunia (5056Q)
October 18 2023 - 1:00AM
UK Regulatory
TIDMBHP
RNS Number : 5056Q
BHP Group Limited
18 October 2023
Exchange release
18 October 2023
BHP announces divestment of the Blackwater and Daunia
BHP and Mitsubishi Development Pty Ltd (MDP) have signed Asset
Sale Agreements to divest the Blackwater and Daunia mines, which
are part of the BHP Mitsubishi Alliance (BMA) metallurgical coal
joint venture in Queensland. Each of BHP and MDP hold a 50%
interest in BMA.
T wo wholly owned subsidiaries of Whitehaven Coal (Buyers) have
agreed to acquire the Blackwater mine and Daunia mine respectively
for cash consideration of up to US$4.1 billion. Whitehaven Coal has
guaranteed the obligations of each Buyer.
The purchase price comprises US$2.1 billion cash on completion,
US$1.1 billion in cash over 3 years after completion and the
potential for up to US$0.9 billion in a price-linked earnout
payable over 3 years. Excluding the price-linked earnout, this
represents an Enterprise Value/Reserves multiple of 12.8/t[1].
The sale is subject to the satisfaction of certain conditions,
including competition and regulatory approvals. The Buyers have
agreed to pay a US$100 million deposit on signing which BHP and MDP
are entitled to retain if the proposed divestment is terminated in
certain limited circumstances.
Completion is expected to occur in the June 2024 quarter. The
Buyers will assume economic and operating control of the Daunia and
Blackwater mines on completion of the sale, including all current
and future environmental liabilities and rehabilitation
obligations.
BMA will continue to operate the assets until completion and
work closely with the Buyers and Whitehaven Coal to ensure a
successful transition of ownership. BHP will support certain
transitional services to the Buyers for a short period of time
after completion.
BHP's President Minerals Australia Geraldine Slattery said:
"This transaction has delivered a good outcome for the BHP
Mitsubishi Alliance, our workforce and the communities around the
Blackwater and Daunia operations.
Whitehaven Coal has a strong track record as a responsible and
reliable operator, and we will work closely with them to achieve a
smooth change of ownership focused on maintaining safe and
productive operations and supporting people and communities through
the transition.
In line with our long-term strategy, we will continue to develop
our high-quality metallurgical coal assets in Queensland, which are
sought after by global steelmakers and needed to support the energy
transition."
Net proceeds will be used to reduce the Group's net debt.
Contacts
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Gabrielle Notley John-Paul Santamaria
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Neil Burrows James Bell
+44 7786 661 683 +44 7961 636 432
Americas Americas
Renata Fernandaz Monica Nettleton
+56 9 8229 5357 +1 (416) 518-6293
BHP Group Limited
ABN 49 004 028 077
LEI WZE1WSENV6JSZFK0JC28
Registered in Australia
Level 18, 171 Collins Street
Melbourne
Victoria 3000 Australia
Tel: +61 1300 55 4757 Fax: +61
3 9609 3015
BHP Group is headquartered in
Australia
bhp.com
[1] Based on Blackwater Marketable Reserves of 183Mt and Daunia
Marketable Reserves of 67Mt, as at 30 June 2023 as disclosed in
BHP's 2023 Annual Report.
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