BHP GROUP LIMITED - BHP to retain New South Wales Energy Coal

BHP to retain New South Wales Energy Coal

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


NEWS RELEASE

Release Time        IMMEDIATE
Date                15 June 2022
Release Number      21/22


Coal divestment review update - BHP to retain New South Wales Energy Coal
BHP today announced that it will retain New South Wales Energy Coal (NSWEC) in its
portfolio, seek the relevant approvals to continue mining beyond its current mining consent that
expires in 2026 and proceed with a managed process to cease mining at the asset by the end
of the 2030 financial year.

The decision follows BHP’s review of its lower grade metallurgical and energy coal assets that
was announced in August 2020 and has also resulted in the divestment of our interests in
Cerrejón and BHP Mitsui Coal (BMC) in January and May 2022 respectively.

A trade sale process for NSWEC was conducted however the process did not result in a viable
offer. Assessment of the resource economics, geotechnical profile and future investment
requirements determined that continued mining in the near term and moving to a closure in
2030 provides the optimal financial outcome when compared to alternate options.

Continuation of mining to the end of FY2030 will afford eight years to work with our people,
state and federal governments and local communities in the Hunter Valley region on a
transition approach that supports long-term community sustainability.

Plans to continue operating NSWEC to FY2030 are subject to obtaining relevant approvals to
enable mining beyond the current consent, which only provides approval for mining until 2026.
Work is underway to prepare the application for the relevant approvals with the New South
Wales and Australian governments to support mining until 2030. This will also include plans
for closure of the asset, including rehabilitation and determining the most appropriate post-
mining land use. It is expected that continued work on rehabilitation will take 10 to 15 years
following the cessation of mining. The provision for closure of the mine as at 31 December
2021 was approximately US$700 million.

Minerals Australia President, Edgar Basto said “We thoroughly reviewed potential options for
NSWEC including divestment and future investment requirements. Seeking approval to
continue mining until 2030 avoids closure in 2026 and enables BHP to balance the value and
risk of those considerations and our commitments to our people and local communities.”

NSWEC Vice President, Adam Lancey said “We will work with our people, local business
partners, Traditional Owners and local and state governments to operate safely and
productively, prepare for closure and sustainable rehabilitation of the site, and ensure the
pathway to closure is managed in a way that meets community and regulatory expectations.”


About NSWEC
The New South Wales Energy Coal (NSWEC) asset comprises the Mt Arthur Coal operation,
which is located near Muswellbrook, New South Wales. Mt Arthur Coal is operated by Hunter
Valley Energy Coal, an entity ultimately owned by BHP Group Limited.
Further information on BHP can be found at: bhp.com


Authorised for lodgement by:
Stefanie Wilkinson
Group Company Secretary


Sponsor: J.P. Morgan Equities South Africa Proprietary


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




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Date: 17-06-2022 07:05:00
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