BHP Mitsubishi Alliance offloads Gregory Crinum Mine to Sojitz for AU$100mn

The BHP Mitsubishi Alliance (BMA) has completed the sale of its Gregory Crinum mine to highly diversified Japanese firm Sojitz for AU$100mn.

BHP said in a statement that the sale of the hard coking coal mine, located in the Bowen Basin on Australia’s east coast, includes the Crinum underground mine, the Gregory open cut mine, on-site coal handling and preparation infrastructure, maintenance workshops and admin facilities.

In its press release, Sojitz said the acquisition comes at a time of rebalancing its coal assets toward thermal coal amidst growing environmental concerns and the impact they could have on the long-term sustainability of the business.

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BHP said that BMA will be appropriately financing rehabilitation of existing areas of disturbance at the site while all liabilities are passed to Sojitz.

“We wish Sojitz well in its plans to recommence production at Gregory Crinum,” said BMA Asset President James Palmer in BHP’s press release. “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.’’

Sojitz will restart operations at the mine by the end of the first half of 2019 and will begin shipping coal in the second half.