0HN3 Bhp Billiton Ltd

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 
----------------------------------------------------------------- 
 Media                             Investor Relations 
  media.relations@bhp.com           investor.relations@bhp.com 
 Australia and Asia                Australia and Asia 
  Gabrielle Notley                  John-Paul Santamaria 
  +61 411 071 715                   +61 499 006 018 
 Europe, Middle East and Africa    Europe, Middle East and Africa 
  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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISGDBDGIDBDGXI

(END) Dow Jones Newswires

October 18, 2023 02:00 ET (06:00 GMT)

Bhp Billiton (LSE:0HN3)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024

Bhp Billiton (LSE:0HN3)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024