REG - BHP Group Limited - BHP completes divestment of Daunia and Blackwater

BHPAnnouncement

02/04/2024 07:00

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RNS Number : 9084I  BHP Group Limited  02 April 2024

BHP Group Limited
Exchange release

2 April 2024

 

BHP completes the divestment of Daunia and Blackwater

BHP and Mitsubishi Development Pty Ltd (MDP) have completed the divestment of
the Blackwater and Daunia mines to Whitehaven Coal.

Daunia and Blackwater were part of the BHP Mitsubishi Alliance (BMA)
metallurgical coal joint venture in Queensland. Each of BHP and MDP hold a 50%
interest in BMA.

Whitehaven Coal has paid BMA US$2.0 billion cash consideration on completion
plus a preliminary completion adjustment of US$44.1 million for working
capital and other agreed adjustments (100% interest basis). Whitehaven Coal
paid a US$100 million deposit on signing of the Asset Sale Agreement on 18
October 2023.

US$1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years
after completion and a potential additional amount of up to US$900 million in
a price-linked earnout may also be payable by Whitehaven Coal to BMA over 3
years (100% interest basis). The price-linked earnout is subject to a cap of
US$350 million each year and depends on average realised pricing exceeding
agreed thresholds for each of the 3 years following completion on 2 April
2024(1).

The total cash consideration for the transaction will be up to US$4.1 billion
plus the final completion adjustment amount.

 

(1) Contingent payments based on 35% revenue share to BMA, subject to average
realised prices achieved by the Assets exceeding thresholds of US$159/tonne in
the 12 month period 12 months post completion, US$134/tonne in the 12 month
period 24 months post-completion and US$134/tonne in the 12 month period 36
months post completion.

 

Authorised for release by Stefanie Wilkinson, Group Company Secretary.

 

 

 

 

 

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