Whitehaven has confirmed all regulatory and competition approvals have been secured for its 30 per cent sell down of the Blackwater mine in Queensland.
The transactions, which will transfer 20 per cent ownership to Nippon Steel and 10 per cent to JFE Steel, is set to be closed on March 31, 2025.
Confirmation of the agreement has taken nearly six months to complete, after the companies first entered binding agreements back in August 2024.
Whitehaven will receive a total cash consideration of $US1.08 billion ($1.7 billion) for the sale, with the proceeds to bolster the company’s balance sheet ahead of the first deferred payment of $US500 million to BHP Mitsubishi Alliance (BMA) for the acquisition of the Daunia and Blackwater mines, which is due on April 2.
Additional payments of $US500 million and $US100 million are scheduled in successive years.
“We are excited to be commencing a joint venture with Nippon Steel and JFE Steel, two long-term customers who recognise the attractiveness of Blackwater’s metallurgical coal products and the importance of securing supply for the longer-term,” Whitehaven chief executive officer and managing director Paul Flynn said.
“The proceeds from the sell down will further strengthen Whitehaven’s balance sheet, the board will review Whitehaven’s capital allocation framework at the end of FY25 (2024–25 financial year), including capacity to lift capital returns for shareholders.”
One of Australia’s largest coal operations, the Blackwater mine is a crucial supplier of metallurgical coal to Asian markets.
Whitehaven has revised its FY25 guidance to reflect its reduced 70 per cent ownership of Blackwater from April 1.
Managed coal production, coal sales, and unit costs remain unchanged, while equity coal sales have been adjusted slightly from 25.1–28.3 million tonnes to 24.3–27.4 million tonnes.
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