Japan’s Mitsubishi Corp has entered into agreements to sell its two thermal coal assets held by Mitsubishi Development, its wholly owned subsidiary headquartered in Brisbane, Australia. The total sale value of the assets is A$750 million (US$539 million).
|Location of the Clermont and Ulan Mine. ©Mitsubishi Corp|
The stake sales come as a growing number of companies and pension funds across the globe are divesting assets or companies that generate revenues from fossil fuels, particularly coal.
According to statement released by Mitsubishi, the company will sell its 31.4 per cent interest in Clermont Coal Mine to a joint venture between Glencore and Sumitomo Corp; and its 10 per cent stake in Ulan Coal Mine to Glencore.
Mitsubishi said that it has been taking steps to optimise its asset portfolio, divestment of the assets being one part of this strategy.
The sales are subject to the terms of the Clermont joint venture documents, under which other joint venture participants hold pre-emptive rights, and fulfillment of other conditions, including certain regulatory approvals. The completions of the sales are expected in 2019, taking the joint venture’s stake in the mine to nearly 81.5 per cent.
“This agreement will allow us to continue supply of high-quality thermal coal to our end users, adding to our continued commitment to energy security and its stable supply,” said Sumitomo in a media statement.
For Mitsubishi, which decided to sell its interest in two other thermal coal mines in Australia last year, the latest deals will mean an exit from thermal coal operations, although its coking coal operation will remain a key asset for the trading house.