Whitehaven considers selling Blackwater stake

Australian miner Whitehaven Coal is reportedly looking at options to sell a 20% stake in the Blackwater mine to global steelmakers as it works to finalize a US$3.2 billion deal for the asset and fellow Bowen Basin mine, Daunia, according to Bloomberg.

“Interest is very, very strong” in relation to a stake in Blackwater, CEO Paul Flynn recently told analysts. “We’ll think about the opportunity with Daunia at a later date.”

Whitehaven announced in October that it had reached an agreement to acquire the two Queensland sites from the BHP Mitsubishi Alliance, a 50/50 joint venture between BHP and Mitsubishi Development.

At the time of the announcement, Flynn said the acquisition would increase Whitehaven’s exposure to the India and Southeast Asia markets “where population growth and economic development is expected to drive strong demand for steel production and metallurgical coal through to at least 2050.”

Sources: Bloomberg and Whitehaven Coal

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