Whitehaven has officially formed a 70:30 joint venture at its Blackwater coal mine with Nippon Steel Corporation and JFE Steel Whitehaven.
Nippon Steel owns a 20 per cent interest in Blackwater, with JFE Steel owning 10 per cent. Whitehaven has retained a 70 per cent stake in the mine.
Whitehaven earned an aggregate cash consideration of $US1.08 billion from the transactions.
“I congratulate everyone involved in the formation of our new joint venture at Blackwater,” Whitehaven chief executive officer and managing director Paul Flynn said.
“We’re excited to be partnering with Nippon Steel and JFE Steel, two longstanding customers that recognise the value and long-term importance of the metallurgical coal produced at Blackwater.”
Whitehaven assumed complete ownership of Blackwater and Daunia mine from BHP in April 2024.
The company acquired both mines for $US4.1 billion, paying BMA $US2 billion plus a preliminary completion adjustment of $US44.1 million.
At the time, Flynn said he was confident about the prospects the divestment would bring.
“This is a significant milestone for Whitehaven that transforms us into a leading metallurgical coal producer and will deliver benefits for all of our stakeholders,” he said.
“I thank the teams at Whitehaven, BMA, BHP and Mitsubishi and our advisors who have worked hard to help us complete this strategically important acquisition.
“We are well placed to execute a smooth transition and to integrate the Daunia and Blackwater mines into the Whitehaven portfolio.”
The transaction gave Whitehaven economic and operating control of both mines while committing to the development’s environmental liabilities and rehabilitation obligations.