Global miner BHP Group said on Thursday it would retain its New South Wales Energy Coal project, after it had earlier announced the mine was under a two-year review process.
BHP had put the assets up for sale, but it was unable to get a viable offer for it, the company said, adding that it had set aside a $700 million provision for closure of the mine.
“Following a review of all available options, BHP has made a decision to keep Mt Arthur Coal in its portfolio and seek the relevant approvals to continue mining beyond its current mining consent that expires in 2026,” BHP said.
The miner said the move was “part of a responsible process to cease mining in 2030 and provide a pathway to closure for the operation”.
Mt Arthur Coal is an open-cut energy coal mine producing coal for international customers in the energy sector. The mine, 5km south of Muswellbrook in the Hunter Valley of New South Wales, is 100% owned by BHP.
The mine, which began operations in 2002, employs about 2,000 people, who predominantly live in the region.
Historically, the site produced coal for domestic and international customers in the energy sector, but shifted to international customers only from the second half of 2020.
- Reuters, with additional editing by George Russell
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