BHP Gets A Fresh Incentive To Quit Coal; Soaring Prices For The Fuel
Floods in eastern Australia are having the unexpected effect of bringing into focus two world-class mining deals, the sale by BHP Group of its coal assets with proceeds potentially helping to fund the final stages of a Canadian potash project.
Both transactions have been slowly moving towards critical decision points with BHP management appearing to be uncertain which way to jump.
Sharply higher coal prices, caused by flood disruption to mining and transport facilities in the coal mining States of New South Wales and Queensland, could be the trigger BHP needs to make a move on its unwanted coal assets.
Two possible exit routes are believed to be under consideration. An outright sale of all thermal, or electricity-generating coal assets, and perhaps some of the more valuable metallurgical, or steel-making coal assets, or a spin-out of assets to existing BHP shareholders. pg slot
