BHP and Stanmore complete BMC deal

4th May 2022 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Coal miner Stanmore Coal has completed the acquisition of an 80% interest in BHP Mitsui Coal (BMC) from diversified giant BHP.

Stanmore has paid a $1.1-billion cash consideration at completion plus a preliminary completion adjustment of approximately $200-million for working capital. A further $100-million cash remains payable to BHP in six months on November 3, with potential for an additional amount of up to $150-million in a price-linked earnout payable to BHP in the 2024 calendar year.

The total cash consideration for the transaction will be up to $1.35-billion plus the final completion adjustment amount.

Stanmore CEO Marcelo Matos told shareholders that the completion of the transaction marked an important milestone in the company’s history.

“Metallurgical and PCI coal prices remain at historically high levels and Stanmore will benefit from those prices with the additional production of approximately 10-million tonnes of marketable metallurgical quality coal creating substantial additional value for the company,” he said.