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BHP extracts $ 1.35bn from coal mines in Australia in oil residues

BHP has reached an agreement to remove $ 1.35bn from Australia’s two coal mines, while the world’s largest mine continues to escape burning oil.

The company sells its 80 percent interest rate to BHP Mitsui Coal, which operates at South Walker Creek and Poitrel coking coal mines in Queensland, at Stanmore Resources. The remaining part of the agreement is that of Mitsui of Japan.

Sales come in between COP26 climate negotiations worldwide in Glasgow and the rising cost of coal, an important source of iron ore. It continues its escape from BHP from crude oil as Anglo-Australian mines he wants a green record.

BHP soon approval a $ 5.7bn plan to complete Canadian potash, and is looking to increase its exposure to copper and nickel.

“As the world degrades, BHP is growing its interest in producing the highest quality coal needed by steel producers around the world to help improve efficiency and reduce emissions,” said Edgar Basto, head of Australia’s mining department.

Metal manufacturing is one of the most important industrial activities very helpful global warming.

BHP placed its stake in BMC on the block in August 2020, when it also announced plans come out hot coals, which burns in power stations.

The company has also sold its share in Colombia’s largest coal mine at Glencore and he announced it making connections its oil and gas supplies are Woodside, an Australian oil and gas producer. It is still looking for a buyer for its remaining coal assets, the New South Wales Energy Coal.

“The process of monitoring the New South Wales Energy Coal is progressing, in line with the two-year period announced in August 2020,” BHP said on Sunday, adding that it “remains open for all elections and will continue discussions with stakeholders.”

Despite the sale of its controlling stake in BMC, BHP will continue to sell coal worldwide through a partnership with Mitsubishi Corp.

The price of charcoal to cook this year there is a huge demand from China and steel manufacturers in other parts of the world where the Covid-19 ban was lifted.

Australian coal prices have risen from $ 120 per tonne earlier in the year to about $ 334 per tonne, according to price estimates from S&P Global Platts.

The partnership with BHP will transform Stanmore, valued at only $ 250m, into a major power in the Australian coal industry. Two Queensland mines will handle 11m tons of coal for the year until June.

To raise funds for the project, Stanmore is asking shareholders to contribute $ 600m, with another $ 625m in debt. The coal group is 75 percent owned by Golden Energy and Resources Limited, a Singapore-based company that has agreed to sign BHP Mitsui Coal.

Under the agreement, Stanmore will pay $ 1.1bn in advance, followed by another $ 100m in six months. The price can also be increased by $ 150m through a revenue agreement linked to coal prices.

Marcelo Matos, Stanmore’s chief executive, said the deal would make the company a leading coal producer and make it “more profitable”. The material he obtains from BHP produces the same type of coal at his Isaac Plains mine in Queensland.

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