Forthcoming sale Australian miner South32 has entered into a binding deal to sell Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources Pte Ltd and M Resources Pty Ltd.
The consideration for the upcoming transaction is up to US$1.65 billion, the Australian business said in a statement.
The deal “will realise significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future,” said Graham Kerr, the chief executive of South32.
“It will streamline our portfolio, strengthen our balance sheet and unlock capital to invest in our high-quality development projects in copper and zinc,” according to the firm’s CEO.
South32 says it produces commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from its operations in Australia, Southern Africa and South America.