BHP Extends Fossil Fuels Withdrawal With Met Coal Asset Sale
- Global miner to sell BMC stake to Stanmore for up to $1.35 bln
- BHP says continuing to review future of NSW energy coal unit
Photographer: Ian Waldie/Bloomberg
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BHP Group will sell its 80% stake in the BMC metallurgical coal venture to Stanmore Resources Ltd. in a deal worth up to $1.35 billion, extending the global miner’s withdrawal from fossil fuels.
BMC, which is 20% owned by Mitsui & Co. Ltd., has two operating mines in Queensland with a combined output of about 10 million tons of coal a year, as well as the undeveloped Wards Well project. Stanmore, which is majority owned by Singapore’s Golden Energy & Resources Ltd., will pay $1.2 billion in cash with a potential follow-up payment of up to $150 million after two years linked to the performance of coal prices.