Japanese firm snaps up Bowen Basin mine for $100M
A MOTHBALLED Bowen Basin coal mine could be back up and running soon with a $100 million sale of the site settling today.
BHP Mitsubishi Alliance and Mitsubishi Development Pty Ltd have offloaded the Gregory Crinum Mine to Japan based company Sojitz Corporation.
The hard coking coal mine, located 60 km north east of Emerald, comprises the Crinum underground mine, Gregory open cut mine, undeveloped coal resources and on-site infrastructure including a coal handling and preparation plant, maintenance workshops and administration facilities.
BMA asset president James Palmer said he wished Sojitz well in its plans to recommence production at Gregory Crinum.
"This will provide new job opportunities and trade benefits for the people of central Queensland, as well as increased royalties and taxes to benefit the state,” he said.
Gregory Crinum Mine's capacity was six million tonnes of hard coking coal per annum when production ceased and it was placed into care and maintenance in January 2016.
BMA made the decision to sell the mine after a detailed review that concluded there was potential for another party to realise greater value at the mine.
In addition to the sale of the mine to Sojitz, BMA is providing appropriate funding for rehabilitation of existing areas of disturbance at the site, with all rehabilitation liabilities transferred to Sojitz. The net impact from this funding is not material for BHP or Mitsubishi.
Completion of the sale was subject to the fulfilment of conditions precedent including customary regulatory approvals.