BMA Completes Acquisition of New Saraji

BHP Billiton Mitsubishi Alliance (BMA) announced that it has completed the previously announced acquisition of the New Saraji Project from New Hope Corp. Ltd. for a $1 billion cash consideration. The project will now be known as Saraji East. It is an undeveloped metallurgical coal resource located adjacent to BMA’s Saraji mine near Dysart.

The purchase comprises Mining Lease Application (MLA) 70383 and Exploration Permit for Coal (EPC) 837 and a port user contract entitlement of 10 million metric tons per year (mt/y) of capacity at the Abbot Point Coal Terminal as it is expanded.

“The outlook for the metallurgical coal market is strong with robust demand from key growth markets,” said Dave Murray, president, BHP Billiton Coal. “BHP Billiton continues to build on its position within the Bowen Basin to accelerate growth.” Saraji East could potentially deliver significant synergies due to its proximity to BMA’s existing Saraji mine. BMA will commence an exploration and evaluation program for Saraji East immediately.

As featured in Womp 08 Vol 8 - www.womp-int.com