Tag Archives: South Walker Creek

BHP to sell stakes in Poitrel and South Walker Creek met coal mines to Stanmore

BHP has signed a Share Sale and Purchase Agreement to divest its 80% interest in BHP Mitsui Coal (BMC), an operated metallurgical coal joint venture in Queensland, Australia, to Stanmore SMC Holdings Pty Ltd.

Stanmore SMC, a wholly owned subsidiary of Stanmore Resources Limited, has agreed to acquire 100% of the shares in Dampier Coal (Queensland) Pty Ltd from BHP Minerals Pty Ltd, the subsidiary which holds BHP’s interest in BMC, for cash consideration of up to $1.35 billion. The purchase price comprises $1.1 billion cash on completion, $100 million in cash six months after completion and the potential for up to $150 million in a price-linked earnout payable in the 2024 calendar year.

The sale is subject to the satisfaction of certain conditions, including customary competition and regulatory approvals. This includes approval from the Foreign Investment Review Board. Completion is expected to occur in the middle of the 2022 calendar year.

The BMC portfolio includes significant infrastructure including an 8.4 Mt/y coal handling and processing plant (CHPP) at South Walker Creek (pictured), the 9 Mt/y Red Mountain CHPP (fully owned by BMC) in close proximity to the Poitrel operations, two rail loops and train loading facilities, two Marion 8050 draglines, and a fleet of excavators, dozers and haul trucks, Stanmore said.

BHP Group Limited operates BMC as part of an 80:20 joint venture with Mitsui.

BHP intends to continue operating BMC until completion and work closely with Stanmore Resources to ensure a successful transition of ownership. It will provide certain transitional services to Stanmore Resources for a short period of time after completion.

BHP’s President Minerals Australia, Edgar Basto, said: “This transaction is consistent with BHP’s strategy, delivers value for our company and shareholders and provides certainty for BMC’s workforce and the local community. As the world decarbonises, BHP is sharpening its focus on producing higher quality metallurgical coal sought after by global steelmakers to help increase efficiency and lower emissions.

“South Walker Creek and Poitrel are well-run assets that have been an important part of our portfolio for many years and we are grateful for their contribution to BHP.

“Under this agreement, BMC will transition to Stanmore Resources, an ASX-listed company that has established relationships with Traditional Owners and strong engagement with their workforce and local communities. Stanmore Resources share our focus on safety performance and culture and support Australia’s commitments under the Paris Agreement.”

Stanmore Resources’ existing assets in Queensland’s Bowen Basin include the Isaac Plains Mine and processing facilities, the adjoining Isaac Plains East and Isaac Downs mining areas and the Isaac Plains Underground Project.

BHP, meanwhile, said the review process for its New South Wales Energy Coal is progressing, in line with the two-year timeframe announced in August 2020.

BHP Mitsui Coal and Barada Barna Aboriginal Corp sign South Walker Creek agreement

The Barada Barna Aboriginal Corporation (BBAC), on behalf of the Barada Barna people, have entered into a Native Title Project Agreement with BHP Mitsui Coal Pty Ltd (BMC) for the South Walker Creek Mine in central Queensland, Australia.

It is the first agreement of its kind between Barada Barna Aboriginal Corporation and BMC, and is structured to deliver immediate and intergenerational benefits to the Barada Barna people, according to BHP.

The agreement will, BHP says, provide mutual benefits and certainty for BMC and Barada Barna.

Financial benefits will be directed towards priority community projects that enable Barada Barna people to live and work on-country, strengthening their important connection. The agreement also delivers ongoing financial security for socio-economic purposes and non-financial contributions in the form of contracting, business, employment, education and training opportunities for Barada Barna people.

The agreement will also support for the ongoing development and operation of South Walker Creek Mine – including a framework for the parties to work together on cultural heritage management and protecting areas of cultural and environmental significance.

Barada Barna Aboriginal Corp Chairperson, Luarna Walsh, said the agreement will ensure lasting and sustainable benefits for the Barada Barna people.

“The agreement will not only provide long-term benefits for the Barada Barna community, it will also achieve projects that BBAC have had in the pipeline for a considerable amount of time.

“Importantly, it sets Barada Barna on a path of self-determination. It will ensure BBAC is sustainable into the future and help our next generation of descendants achieve their goals through schooling and university, and employment and training. This agreement also provides BBAC with the ability to diversify our income streams, by creating Traditional Owner business’ that can tender for a variety of contracts on country.

“I’m very proud to have been involved in this negotiation alongside fellow Barada Barna Directors, and, after tough and sometimes testing negotiations, to say we have reached a successful outcome.”

BMC Asset President, Elsabe Muller, said the agreement sets out the long-term partnership with the Barada Barna people.

“We’re looking forward to continue working with the Barada Barna people and contributing to their communities benefitting from sustainable economic, social and cultural initiatives,” Muller said.

“The agreement outlines a path forward for a long-term relationship based on trust, respect and mutual benefit. It will also see BMC and Barada Barna work together in relation to the management of cultural heritage at South Walker Creek and deepen our workforces’ knowledge and understanding of Barada Barna history and connection to country through cultural awareness training.”

The Barada Barna people are the native title holders (determined in September 2016) over approximately 3,000 sq.km of land in central Queensland, where BMC’s South Walker Creek open-pit mine is located.