PERTH (miningweekly.com) – BHP Mitsubishi (BMA) has announced the sale of the Gregory Crinum coking coal mine, in Queensland, to Japan’s Sojitz Corporation for A$100-million.

The six-million-tonne-a-year mine was placed under care and maintenance in January 2016.

BHP said on Wednesday that BMA, in which it holds 50%, made the decision to divest the mine after a detailed review concluded that there was potential for another party to realise greater value at the mine.

“This is a great outcome for the parties to the transaction and for the region. This will provide further employment in Emerald, and additional royalties and taxes to the people of Queensland,” said BMA asset president Rag Udd.

Sojitz has revealed plans to restart operations at Gregory Crinum as soon as the acquisition process has been completed, saying that there is a sufficient amount of coking coal reserves remaining at the mine.

While putting the Gregory Crinum back on line, Sojitz also plans to provide contract mining and related services to other nearby greenfield developments, with the company saying that it aims to develop a stable business that is not exposed to the volatility of resource prices, and to contribute to the local community through creating more jobs.

In addition to the sale of the coal mine, BMA will also be providing funding to rehabilitate the existing areas of disturbance, with all rehabilitation liabilities to be transferred to Sojitz.

Queensland Mines Minister Dr Anthony Lynham has welcomed the new jobs and business opportunities flowing into regional Queensland as coking coal operations restarted.

Lynham said up to 300 jobs would be created as the Gregory Crinum mine reached full operational capacity.

“This is great news for the Central Highlands, where Sojitz is already a significant employer as the owner and operator of nearby Minerva mine and more recently commenced operations at Meteor Downs,” he said.

“It’s also pleasing that Sojitz will be accelerating rehabilitation at the site. This is a reflection of Queensland premium coking coal prices, now at more than A$240 compared to A$115 two years ago, as well as confidence in Queensland as a resources investment destination.”

Diversified miner South32 earlier this week signed a conditional agreement to acquire a 50% interest in the Eagle Downs coal project, also in Queensland, agreeing to assume control of the operation.

South32 plans to work with Aquila Resources to fast-track the optimised development of Eagle Downs underground mine near Moranbah in the Bowen basin, where early construction works were started but stopped in late 2015.

The project is fully permitted and is immediately adjacent to BHP’s Peak Downs mine. The project was placed under care and maintenance in late 2015, and currently has a coal resource of 1.12-billion tonnes, of which 67% is in the measured category and 12% in the indicated category.