BHP Group Limited
BHP Group Limited ABN 49 004 028 077
Registered in Australia
Registered Office: Level 18, 171 Collins Street Melbourne VIC 3000
Share code: BHG
ISIN: AU000000BHP4

Exchange release
18 October 2023



BHP announces divestment of the Blackwater and Daunia
BHP and Mitsubishi Development Pty Ltd (MDP) have signed Asset Sale Agreements to divest the
Blackwater and Daunia mines, which are part of the BHP Mitsubishi Alliance (BMA) metallurgical coal
joint venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.
Two wholly owned subsidiaries of Whitehaven Coal (Buyers) have agreed to acquire the Blackwater
mine and Daunia mine respectively for cash consideration of up to US$4.1 billion. Whitehaven Coal
has guaranteed the obligations of each Buyer.
The purchase price comprises US$2.1 billion cash on completion, US$1.1 billion in cash over 3 years
after completion and the potential for up to US$0.9 billion in a price-linked earnout payable over 3
years. Excluding the price-linked earnout, this represents an Enterprise Value/Reserves multiple of
12.8/t1.
The sale is subject to the satisfaction of certain conditions, including competition and regulatory
approvals. The Buyers have agreed to pay a US$100 million deposit on signing which BHP and MDP
are entitled to retain if the proposed divestment is terminated in certain limited circumstances.
Completion is expected to occur in the June 2024 quarter. The Buyers will assume economic and
operating control of the Daunia and Blackwater mines on completion of the sale, including all current
and future environmental liabilities and rehabilitation obligations.
BMA will continue to operate the assets until completion and work closely with the Buyers and
Whitehaven Coal to ensure a successful transition of ownership. BHP will support certain transitional
services to the Buyers for a short period of time after completion.
BHP’s President Minerals Australia Geraldine Slattery said: “This transaction has delivered a good
outcome for the BHP Mitsubishi Alliance, our workforce and the communities around the Blackwater
and Daunia operations.
Whitehaven Coal has a strong track record as a responsible and reliable operator, and we will work
closely with them to achieve a smooth change of ownership focused on maintaining safe and
productive operations and supporting people and communities through the transition.
In line with our long-term strategy, we will continue to develop our high-quality metallurgical coal
assets in Queensland, which are sought after by global steelmakers and needed to support the
energy transition.”
Net proceeds will be used to reduce the Group’s net debt.



1   Based on Blackwater Marketable Reserves of 183Mt and Daunia Marketable Reserves of 67Mt, as at 30 June
    2023 as disclosed in BHP’s 2023 Annual Report.


BHP Group Limited ABN 49 004 028 077
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 BHP Group Limited
 ABN 49 004 028 077
 LEI WZE1WSENV6JSZFK0JC28
 Registered in Australia
 Level 18, 171 Collins Street
 Melbourne
 Victoria 3000 Australia
 Tel: +61 1300 55 4757 Fax: +61 3 9609 3015
 BHP Group is headquartered in Australia


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BHP Group Limited ABN 49 004 028 077