In a significant move aimed at distancing themselves from fossil fuels, Australian mining giant BHP and Japan’s Mitsubishi Development Pty Ltd. announced on Wednesday their agreement to sell two coking coal mines in Queensland, Australia, to rival firm Whitehaven Coal for up to $4.1 billion in cash.
The deal entails Whitehaven acquiring the Blackwater and Daunia mines through an asset sale agreement, marking a substantial shift in the ongoing energy landscape.
Transaction Details and Deposit
Under the agreement, Whitehaven will make an initial payment of $2.1 billion to BHP and the Mitsubishi subsidiary upon deal completion. Following this, an additional $1.1 billion will be paid over three years, with the potential for an extra $900 million based on the mines’ performance. A $100 million deposit has already been made, refundable if the deal doesn’t materialize.
BHP’s Stock Movement
Shares of BHP Group, traded on the London Stock Exchange, displayed a subtle uptick to 2,381 pence late Wednesday morning, a modest 0.1% increase from Tuesday’s closing price of 2,379 pence.
