Australian miner Whitehaven Coal has completed its acquisition of the Daunia and Blackwater metallurgical coal mines from BHP and Mitsubishi Development.
The BHP Mitsubishi Alliance (BMA) sold the mines to Whitehaven for a total consideration of $4.1-billion.
Whitehaven has paid BMA $2-billion in cash, plus a preliminary completion adjustment of $44.1-million for working capital. Whitehaven also paid a $100-million deposit on October 18.
The group will pay the balance of $1.1-billion over the next three years, as well as a potential additional amount of $900-million in a price-linked earnout.
BHP has previously said that, although high-quality assets with growth potential, the Daunia and Blackwater mines would struggle to compete for capital under BHP’s capital allocation framework, including given its choices for deploying capital globally.