BHP Mitsubishi Alliance (BMA) joint venture partners BHP and Mitsubishi Development have confirmed completion of the sale of the Gregory Crinum Mine in central Queensland, to Sojitz Corporation for AU$100 million.

Location of the Gregory Crinum mine. ©Sojitz

Gregory Crinum is a hard-coking coal mine located 60 kilometres north east 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.

In a company statement, Sojitz has announced a rebalancing of its existing coal assets biased towards thermal coal, in light of mounting environmental concerns around the globe and the long-term sustainability of the business.

“The acquisition of this coking coal mine is part of that initiative, along with the agreement to sell its stake in the BAU thermal coal mine in Indonesia, announced on 11 March 2109,” said Sojitz.

BMA Asset President James Palmer praised the opportunity the sale presents for the region, as well as more broadly across Queensland.

“We wish Sojitz well in its plans to recommence production at Gregory Crinum. This will provide new job opportunities and trade benefits for the people of central Queensland, as well as increased royalties and taxes to benefit the state.’’

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.

BMA made the decision to sell the mine after a detailed review that concluded there is potential for another party to realise greater value at the mine.

In addition to the sale of the mine to Sojitz, BMA is providing appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz. The net impact from this funding is not material for BHP or Mitsubishi.

Sojitz will restart operations at Gregory Crinum in the first half of FY2019, with the first shipment of coal in the second half of the year.

Source:  www.sojitz.com; www.bhp.com