Sojitz agrees to acquire
Gregory Crinum Mine
Sojitz Coal Mining Pty Ltd (Sojitz) is very pleased to announce that it has entered into a binding agreement with BHP Billiton Mitsubishi Alliance joint venture partners BHP and Mitsubishi Development Pty Ltd (the Sellers) to acquire the entire 100% interest in the Gregory Crinum Mine, located near Emerald in central Queensland (the Mine), for $100 million.
The transaction is subject to satisfaction of several conditions precedents, including the receipt of regulatory approvals from Australia’s Foreign Investment Review Board and the Queensland Government. Subject to these final approvals being satisfied, completion is expected to occur in the second half of 2018.
Once completion is achieved, Sojitz will immediately begin activities to recommence operations at Gregory Crinum Mine. The Mine will be operated by a wholly owned subsidiary of Sojitz, and will have an annual capacity of up to 3.0 million tonnes of product coal when fully operational with a mine life of more than 20 years. The Mine will also create significant full time employment opportunities for the local community.
Sojitz will also accelerate rehabilitation of the pre-disturbed areas of the Mine, activity that will be fully funded by the Sellers. Taking this opportunity, Sojitz will establish a wholly owned environmental company, which will manage the rehabilitation of Gregory Crinum Mine as well as other operations managed by Sojitz. The new environmental company will also explore opportunities to manage and conduct rehabilitation of mines operated by other companies.
Commenting on the agreement, Sojitz CEO & Managing Director Cameron Vorias said “Sojitz is excited to be acquiring Gregory Crinum and recommencing the Mine. It will be a significant expansion of our current mining group which includes the existing Minerva and Meteor Downs South Mines. This purchase also aligns with the Sojitz goal of managing and operating a hard coking coal mine, and broaden the business opportunities in rehabilitation and alternate land use including solar farming for internal and commercial use."
“Recommencement of mining operations at Gregory Crinum will deliver significant benefits to all our stakeholders in addition to ensuring security of supply of hard coking coal to our valued customers, as well as providing jobs and strengthening the economy for the people in the region and the State of Queensland”
“Gregory Crinum will be the third mine that will be operated by Sojitz and will be managed by adopting the same principles and standards that are in place at other Sojitz operated mines with a particular emphasis on safety and environmental sustainability.”
“This transaction demonstrates Sojitz’s vote of confidence towards the Australian coal industry, and we look forward to further growth in the future.”