SHANGHAI, Nov 9 (SMM) — BHP Group, the world's largest mining company, is further withdrawing from the field of fossil fuels. The mining company said on Monday that it will sell the controlling stake in the two metallurgical coal mines to Stanmore Resources Ltd. for a price of up to $1.35 billion, thereby shifting its business focus to high-quality coal.
BHP predicts that as the global steel industry accelerates decarbonisation, the demand for high-quality coal will grow stronger. BHP said Stanmore will acquire an 80% stake in BHP Billiton Mitsui Coal Company (BMC). BMC is a joint venture company formed by BHP and Mitsui Group, with Mitsui and Co. holding 20% of the shares.
BMC operates two coal mines in South Walker Creek and Poitrel in Queensland, which is the region with the richest coal resources in northeastern Australia. When the transaction is completed, BHP will receive $1.1 billion in cash, and another $100 million in cash after six months.