Whitehaven Coal has announced separate binding agreements to sell a 20pct stake in the Blackwater coal mine to Nippon Steel Corporation and a 10pct stake to JFE Steel Corporation for a total of USD 1.08 bln.
The deals are expected to close in Q1 2025, pending regulatory approvals.
Following the transactions, the Blackwater mine will be jointly owned by Whitehaven, Nippon Steel, and JFE Steel through an unincorporated joint venture, with Whitehaven managing the operation.
Both Nippon Steel and JFE Steel, which have long-term consumption agreements for Blackwater’s metallurgical coal, will enter into offtake agreements with market-based pricing mechanisms reflecting their equity interests and historical consumption.
Nippon Steel noted that the deal will enhance the stability of its coal supply, while JFE Steel highlighted its new role in mine operations and long-term coal supply security.
The Blackwater mine, located 73 km southeast of Emerald in Queensland, produces around 12-13 mln tons of coal annually and exports to Asia via the RG Tanna Terminal.
