BHP Group Limited BHP to retain New South Wales Energy Coal (0678P)
16 June 2022 - 4:00PM
UK Regulatory
TIDMBHP
RNS Number : 0678P
BHP Group Limited
16 June 2022
NEWS RELEASE
Release Time IMMEDIATE
Date 15 June 2022
Release Number 21/22
Coal divestment review update - BHP to retain New South Wales
Energy Coal
BHP today announced that it will retain New South Wales Energy
Coal (NSWEC) in its portfolio, seek the relevant approvals to
continue mining beyond its current mining consent that expires in
2026 and proceed with a managed process to cease mining at the
asset by the end of the 2030 financial year.
The decision follows BHP's review of its lower grade
metallurgical and energy coal assets that was announced in August
2020 and has also resulted in the divestment of our interests in
Cerrejón and BHP Mitsui Coal (BMC) in January and May 2022
respectively.
A trade sale process for NSWEC was conducted however the process
did not result in a viable offer. Assessment of the resource
economics, geotechnical profile and future investment requirements
determined that continued mining in the near term and moving to a
closure in 2030 provides the optimal financial outcome when
compared to alternate options.
Continuation of mining to the end of FY2030 will afford eight
years to work with our people, state and federal governments and
local communities in the Hunter Valley region on a transition
approach that supports long-term community sustainability.
Plans to continue operating NSWEC to FY2030 are subject to
obtaining relevant approvals to enable mining beyond the current
consent, which only provides approval for mining until 2026. Work
is underway to prepare the application for the relevant approvals
with the New South Wales and Australian governments to support
mining until 2030. This will also include plans for closure of the
asset, including rehabilitation and determining the most
appropriate post-mining land use. It is expected that continued
work on rehabilitation will take 10 to 15 years following the
cessation of mining. The provision for closure of the mine as at 31
December 2021 was approximately US$700 million.
Minerals Australia President, Edgar Basto said "We thoroughly
reviewed potential options for NSWEC including divestment and
future investment requirements. Seeking approval to continue mining
until 2030 avoids closure in 2026 and enables BHP to balance the
value and risk of those considerations and our commitments to our
people and local communities."
NSWEC Vice President, Adam Lancey said "We will work with our
people, local business partners, Traditional Owners and local and
state governments to operate safely and productively, prepare for
closure and sustainable rehabilitation of the site, and ensure the
pathway to closure is managed in a way that meets community and
regulatory expectations."
About NSWEC
The New South Wales Energy Coal (NSWEC) asset comprises the Mt
Arthur Coal operation, which is located near Muswellbrook, New
South Wales. Mt Arthur Coal is operated by Hunter Valley Energy
Coal, an entity ultimately owned by BHP Group Limited.
Further information on BHP can be found at: bhp.com
Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary
Media Relations Investor Relations
Email: media.relations@bhp.com Email: investor.relations@bhp.com
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