BHP coal exit stalled by Mt Arthur bids

The Mt Arthur coal mine is the largest coal mine in New South Wales’ Hunter Valley region and is expected to be worth around $1 billion.

It is forecast to have production of between 15 and 17 million tonnes for the 12 months ended on June 30.

BHP hired Macquarie bank and JP Morgan to sell the thermal coal mine last year, sources said. However, offers from Yancoal Australia and Adani have allegedly been rejected due to offers not meeting valuation.

“Yancoal considers acquisitive growth opportunities as they arise, such as BHP’s thermal coal assets, and is committed to only acquiring appropriately priced assets of genuine future value,” a Yancoal spokesperson told Australian Mining.

The sale of the mine follows suit with many major miners turning away from coal assets to improve their emissions targets.

Adani declined to comment on its interest in acquiring the mine.