TOKYO, Apr 3, 2024 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce the successful completion of the sale of the Blackwater and Daunia coal mines to Australia's Whitehaven Coal Ltd. (Whitehaven). This divestment, initially released by MC on October 18, 2023, has now reached fruition. MC's 50% stake in each of these mining assets was acquired through its wholly owned subsidiary, Mitsubishi Development Pty Ltd. (MDP). MDP shares equal ownership of the BHP Mitsubishi Alliance (BMA) with the resource major BHP. Following the completion of all required legal proceedings and sale conditions, the divestment of both mines by BMA to Whitehaven was officially concluded today.
Map of Blackwater and Daunia Mines
MC consistently evaluates its mineral resources portfolio to enhance its quality and resilience against potential downturns. The strategic choice to divest from these two mines was guided by this overarching objective, marking the culmination of MC's efforts to consolidate its holdings in high-grade metallurgical coal assets. Ensuring stability in the supply of this crucial commodity remains a top priority for MC, underscoring its ongoing commitment to maintaining BMA as a cornerstone of its mineral resources portfolio.
BMA's high-grade metallurgical coal, when used in blast furnaces, yields lower greenhouse gas emissions compared to conventional metallurgical coal. This underscores its potential to play a pivotal role in decarbonizing the steelmaking industry. While ensuring a steady supply of high-grade metallurgical coal and iron ore remains critical for MC's mission to support society in achieving carbon neutrality, net proceeds can be strategically allocated towards expanding its supply capabilities in other critical minerals essential for electrification. These may include copper, aluminum/bauxite, lithium, and nickel. Additionally, MC intends to invest in secondary resources to propel the circular economy forward, thereby amplifying support for EX (Energy Transformation) initiatives.
Further details regarding the sale of these two coal mines will be incorporated into MC's forecast for its fiscal year 2024 consolidated financial results, which will be announced in the near future.
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