BMA to Acquire Australia High Grade Coking Coal Deposit

Mitsubishi Corporation and BHP Billiton announced on Thursday the 50/50 joint venture, BHP Billiton Mitsubishi Alliance (BMA) will purchase Australian undeveloped metallurgical coal deposit for around A$ 2.45 billion. The mine located next to existing high grade metallurgical coal mine is expected to produce annual 6-8 million tonnes of high grade coking coal. World largest coking coal supplier of BMA keeps study to start the operation as early as 2013. BMA tries to realize 20 million tonnes scale expansion in 7-8 years including the new deposit. BMA agreed with Australian coal miner, New Hope Corporation to acquire 100% of New Saraji project in Queensland. The underground deposit in Boen Basin is next to Saraji mine, which is the main coking coal mine of BMA. The deposit has 690 million tonnes of resource under New Hope’s study. BMA gets also annual 10 million tonnes of port user contract for Abbott point coal terminal. BMA with annual 52 million tonnes of coking coal output studies 15-20 million tonnes of expansion by around 2015. The firm could revise the expansion upward by acquiring the new deposit.