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Whitehaven confirms talks for BMA assets

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Whitehaven confirms talks for BMA assets

Posted on : 20-09-2023 | Author : Esmarie Iannucci

Photo by Mining Weekly
Whitehaven Coal, a coal mining company, has confirmed its participation in the sale process initiated by the BHP Mitsubishi Alliance (BMA) for the Duania and Blackwater metallurgical coal mines in Queensland. BHP, a diversified mining company, previously announced its intention to divest the Daunia and Blackwater coal mines as part of its strategy to focus on the highest quality metallurgical coal assets. Although these mines are high-quality and have growth potential, they were not aligned with BHP's capital allocation framework, which prioritized other global capital deployment opportunities. BHP sought to sell these assets to an operator better suited to prioritize the necessary investments for their continued successful operation. Whitehaven Coal stated that the sales process for these two assets is ongoing. The company also mentioned that it had temporarily suspended its share buy-back program while considering the application of its capital allocation framework in light of various growth opportunities, which include the Daunia and Blackwater mines. The board will decide on the resumption of the share buy-back at an appropriate time.