Home Energy assets BHP to keep New South Wales Energy Coal project after failing to find buyer

BHP to keep New South Wales Energy Coal project after failing to find buyer

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A small toy figurine and a mineral imitation are seen in front of the BHP logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/

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June 16 (Reuters) – Global miner BHP Group Ltd (BHP.AX) said on Thursday it would keep its New South Wales Energy Coal (NSWEC) project because it could not secure a viable bid for it, after having announced a two-year deal earlier. review process for this.

BHP is seeking to exit some of its lower-grade metallurgical coal and energy coal assets and has since divested its stakes in the BHP Mitsui Coal and Cerrejón projects over the past year.

“Mt Arthur Coal has been economically difficult for several years and despite recent price strengthening we know it is a complex well to mine,” said Adam Lancey, vice president of NSW Energy Coal at BHP.

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NSWEC includes the Mt Arthur coal workings near Muswellbrook, New South Wales.

The company will now keep the NSWEC project and close it in 2030, he said, adding that the closure and rehabilitation of the project site is expected to take another 10 to 15 years.

It had made a provision of $700 million for the closure of the mine by December 31, 2021.

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Reporting by Harshita Swaminathan; Editing by Rashmi Aich

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