A multinational resources giant divested multiple coal operations in Central Queensland’s Isaac region.
BHP recently sold its 80 per cent stake in BHP Mitsui Coal (BMC) to part of Stanmore Resources for at least US$1.35 billion (A$1.9B). A further US$200 million (A$281.9M) will also be payable in “final completion” adjustments.
The deal effectively gives subsidiary Stanmore SMC a controlling interest in the following metallurgical coal assets:
- Wards Well
- South Walker Creek
- Red Mountain Infrastructure.
The new owner promised to prioritise employee health and wellbeing, and reduce the organisation’s carbon footprint.
“[Stanmore Resources] has committed to oversee and operate BMC in compliance with industry best practice in relation to safety and environmental performance, as well as regulatory, community and workforce engagement,” BHP said in a public statement.
Stanmore admitted soaring commodity prices motivated the company to make the purchase.
“Metallurgical and pulverised coal injection coal prices remain at historically high levels, and Stanmore will benefit from those prices with the addition of production of approximately 10 million tonnes of marketable metallurgical quality coal,” CEO Marcelo Matos said in an Australian Securities Exchange statement.