BHP Group Ltd said it and Mitsubishi Development Pty Ltd had completed the sale of the Blackwater and Daunia mines.
These mines are part of the BHP Mitsubishi Alliance metallurgical coal joint venture in Queensland. BHP and Mitsubishi Development each hold a 50% interest in the venture.
BHP announced back in October it had agreed to sell the Blackwater and Daunia mines to two wholly owned subsidiaries of Whitehaven Coal for $4.1 billion in cash.
On Tuesday, the Melbourne, Australia-based resource miner said Whitehaven Coal had paid BHP Mitsubishi Alliance $2.0 billion cash on completion date on Tuesday plus a preliminary adjustment of $44.1 million for working capital and other agreed changes.
Whitehaven Coal paid a $100 million deposit on signing of the asset sale agreement on October 18.
BHP said $1.1 billion cash remains payable by Whitehaven Coal to the joint venture over three years after completion and a potential additional amount of up to $900 million in a price-linked earnout may also be payable by Whitehaven Coal to the venture over three years.
The price-linked earnout is subject to a cap of $350 million each year and depends on average realised pricing exceeding agreed thresholds for each of the three years following completion on April 2, 2024.
‘The total cash consideration for the transaction will be up to $4.1 billion plus the final completion adjustment amount,’ BHP said.
Shares in BHP rose 1.9% to A$45.13 on Tuesday in Sydney.
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