17th Jul 2008 10:47
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Release Time |
IMMEDIATE |
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Date |
17 July 2008 |
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Number |
25/08 |
BHP BILLITON MITSUBISHI ALLIANCE entered into an AGREEMENT TO ACQUIRE THE NEW SARAJI COAL PROJECT
BHP Billiton today announced that BHP Billiton Mitsubishi Alliance (BMA) has entered into an agreement to acquire 100 per cent of the New Saraji Project from New Hope Corporation Limited for a cash consideration of approximately US$2.4 billion (US$1.2 billion, BHP Billiton share).
New Saraji is an undeveloped metallurgical coal resource located adjacent to BMA's Saraji mine near Dysart in Queensland's prolific Bowen Basin. New Hope's total Coal Resources estimate (New Hope Analysts Briefing 27 March 2008) for New Saraji is 690 million tonnes (156 million tonnes Indicated Resources and 534 million tonnes Inferred Resources).
The purchase comprises Mining Lease Application (MLA) 70383 and Exploration Prospecting Consent (EPC) 837, and port user contract entitling the purchaser to 10 million tonnes per annum of capacity at the Abbott Point coal terminal as it is expanded. Completion is subject to certain third party consents and normal government approvals.
BHP Billiton Coal President Dave Murray said: "This acquisition is consistent with our strategy to accelerate growth in long life, low cost natural resources with a focus on delivering shareholder value. Based on drilling results to date, New Saraji has extensive high quality metallurgical coal resources. Subject to the results of further resource exploration and evaluation program to be undertaken by BMA, New Saraji has the potential to be developed into a large scale, high quality metallurgical coal operation. New Saraji could also potentially deliver significant synergies due to its proximity to BMA's existing Saraji mine."
BMA is a 50:50 joint venture between BHP Billiton and Mitsubishi Corporation.
Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com
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Australia Samantha Evans, Media Relations Tel: +61 3 9609 2898 Mobile: +61 400 693 915 email: [email protected] |
United Kingdom & South Africa Andre Liebenberg, Investor Relations Tel: +44 20 7802 4131 Mobile: +44 7920 236 974 email: [email protected] |
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Leng Lau, Investor Relations Tel: +61 3 9609 4202 Mobile: +61 403 533 706 email: [email protected] United States Scott Espenshade, Investor Relations Tel: +1 713 599 6431 Mobile: +1 713 208 8565 email: [email protected] |
Illtud Harri, Media Relations Tel: +44 20 7802 4195 Mobile: +44 7920 237 246 email: [email protected]
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