BHP GROUP LIMITED - BHP completes the divestment of Daunia and Blackwater

BHP completes the divestment of Daunia and Blackwater

BHP Group Limited
BHP Group Limited ABN 49 004 028 077
Registered in Australia
Registered Office: Level 18, 171 Collins Street Melbourne VIC 3000
Share code: BHG
ISIN: AU000000BHP4




Exchange release
2 April 2024



BHP completes the divestment of Daunia and Blackwater

BHP and Mitsubishi Development Pty Ltd (MDP) have completed the divestment of the Blackwater
and Daunia mines to Whitehaven Coal.

Daunia and Blackwater were part of the BHP Mitsubishi Alliance (BMA) metallurgical coal joint
venture in Queensland. Each of BHP and MDP hold a 50% interest in BMA.

Whitehaven Coal has paid BMA US$2.0 billion cash consideration on completion plus a preliminary
completion adjustment of US$44.1 million for working capital and other agreed adjustments (100%
interest basis). Whitehaven Coal paid a US$100 million deposit on signing of the Asset Sale
Agreement on 18 October 2023.

US$1.1 billion cash remains payable by Whitehaven Coal to BMA over 3 years after completion and a
potential additional amount of up to US$900 million in a price-linked earnout may also be payable by
Whitehaven Coal to BMA over 3 years (100% interest basis). The price-linked earnout is subject to a
cap of US$350 million each year and depends on average realised pricing exceeding agreed
thresholds for each of the 3 years following completion on 2 April 20241.

The total cash consideration for the transaction will be up to US$4.1 billion plus the final completion
adjustment amount.


1 Contingent payments based on 35% revenue share to BMA, subject to average realised prices
achieved by the Assets exceeding thresholds of US$159/tonne in the 12 month period 12 months
post completion, US$134/tonne in the 12 month period 24 months post-completion and US$134/tonne
in the 12 month period 36 months post completion.


Authorised for release by Stefanie Wilkinson, Group Company Secretary.


Sponsor: J.P. Morgan Equities South Africa Proprietary Limited




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 BHP Group Limited
 ABN 49 004 028 077
 LEI WZE1WSENV6JSZFK0JC28
 Registered in Australia
 Level 18, 171 Collins Street
 Melbourne
 Victoria 3000 Australia
 Tel: +61 1300 55 4757 Fax: +61 3 9609 3015
 BHP Group is headquartered in Australia


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BHP Group Limited ABN 49 004 028 077


Date: 02-04-2024 07:14:00
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