BHP Billiton Mitsubishi Alliance (BMA), a 50-50 joint venture between BHP and Mitsubishi Development, has agreed to sell the mothballed Gregory Crinum Mine in central Queensland, to Sojitz Corporation for A$100 million.
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.
Before it was placed into care and maintenance in January 2016, the mine had a production capacity of six million tonnes of hard coking coal per annum.
BMA Asset President Rag Udd said the decision to sell the mine followed a detailed review that concluded there is potential for another party to realise greater value at the mine.
“This is a great outcome for the parties to the transaction and for the region,” Mr Udd added.
“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.”
The sale, subject to customary regulatory approvals, is expected to complete in several months.