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BHP Group Limited — Capital/Financing Update 2024
Apr 1, 2024
14787_rns_2024-04-01_df7d7012-9e43-4c30-80d2-c46f97fc3491.pdf
Capital/Financing Update
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Exchange release
2 April 2024
BHP completes the divestment of Daunia and Blackwater
BHP and Mitsubishi Development Pty Ltd ( MDP ) have completed the divestment of the Blackwater and Daunia mines to Whitehaven Coal.
Daunia and Blackwater were part of the BHP Mitsubishi Alliance ( BMA ) metallurgical coal joint venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.
Whitehaven Coal has paid BMA US$2.0 billion cash consideration on completion plus a preliminary completion adjustment of US$44.1 million for working capital and other agreed adjustments (100% interest basis). Whitehaven Coal paid a US$100 million deposit on signing of the Asset Sale Agreement on 18 October 2023.
US$1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years after completion and a potential additional amount of up to US$900 million in a price-linked earnout may also be payable by Whitehaven Coal to BMA over 3 years (100% interest basis). The price-linked earnout is subject to a cap of US$350 million each year and depends on average realised pricing exceeding agreed thresholds for each of the 3 years following completion on 2 April 2024[1] .
The total cash consideration for the transaction will be up to US$4.1 billion plus the final completion adjustment amount.
1 Contingent payments based on 35% revenue share to BMA, subject to average realised prices achieved by the Assets exceeding thresholds of US$159/tonne in the 12 month period 12 months post completion, US$134/tonne in the 12 month period 24 months post-completion and US$134/tonne in the 12 month period 36 months post completion.
Authorised for release by Stefanie Wilkinson, Group Company Secretary.
BHP Group Limited ABN 49 004 028 077
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Contacts
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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
bhp.com
BHP Group Limited ABN 49 004 028 077
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BHP Group Limited ABN 49 004 028 077