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First announced in July, the acquisition of New Hope’s New Saraji project will increase BMA’s footprint in the renowned Queensland coking coal basin.
New Saraji has a coking coal resource of 690 million tonnes and comes with a mining lease application, exploration permit and a 10 million tonne per annum port allocation at the Abbot Point Coal Terminal.
The project is adjacent to BMA’s existing opencut Saraji mine, near the town of Dysart, and will now be known as Saraji East.
BHP coal president Dave Murray said the demand for coking coal from steel mills remained strong.
“The outlook for the metallurgical coal market is strong with robust demand from key growth markets,” Murray said.
“BHP Billiton continues to build on its position within the Bowen Basin to accelerate growth and bring new production to meet the needs of our customers and generate value for our shareholders.”
New Hope is assessing its capital structure and is considering potential uses of the cash from the sale. The miner currently produces thermal coal from its open cut New Acland and New Oakleigh mines in south east Queensland as well as exploration ventures.
When the deal was first announced New Hope chairman Robert Millner said the sale would help New Hope expand its New Acland mine and further develop its Queensland Bulk Handling port facility in Brisbane.
New Hope closed steady yesterday at $4.40.
