South32 closes door on coal with Illawarra sale

Photo: South32

Australian miner South32 has agreed to sell its Illawarra metallurgical coal business for $1.65 billion, exiting the coal market to focus on copper and zinc opportunities, reported Reuters.

Illawarra is being sold to a consortium led by Golden Energy and Resources and M Resources. The deal comprises an upfront cash payment of $1.05 billion at completion, and a deferred cash consideration of $250 million payable in 2030.

The transaction is expected to close in the first half of fiscal 2025, subject to the satisfaction of certain conditions, including a waiver of pre-emptive purchase rights held by BlueScope Steel.

Illawarra met coal operations are in the Illawarra and Macarthur regions of the southern coalfields of New South Wales, about 75 kilometres south of Sydney.

Source: Reuters

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