BHP to sell Gregory Crinum mine to Sojitz Corp for A$100 million

One of the world’s largest mine operators in Australia has announced its intention to sell a major coal operation, after years of being under care and maintenance.

BHP Billiton announced in a statement this week that through its joint venture partners BHP and Mitsubishi Development Pty Ltd, an agreement has been reached to sell the company’s Gregory Crinum mine to Sojitz Corporation.

Through the deal, which has been valued at A$200m, BHP will continue to provide appropriate funding for rehabilitation of existing areas of the site.

Gregory Crinum is a hard-coking coal mine located 60 km 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.

Related stories:

BHP agrees partnership with Minetec for deliver technology solutions to Olympic Dam

BHP Billiton records 25% H1 2018 profit rise

BHP to utilise China’s economic transformation

With capacity was six million tonnes of hard coking coal per annum at the time production ceased, it was placed into care and maintenance in January 2016.

Since then, BHP came to a decision to look to sell the mine under the belief that another party could “realise greater value” at the mine.

BMA Asset President Rag Udd said, “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”.

“We wish Sojitz well in its plans to recommence production at the site,” Mr Udd said.