Nippon Steel to buy 20%, JFE Steel 10% (Il Sole 24 Ore Radiocor) - Sydney, 22 Aug - Australian miner Whitehaven Coal said it has entered into separate binding agreements with Nippon Steel and JFE Steel for the sale of a joint venture interest in the Blackwater coal mine of 20% and 10%, respectively, for an aggregate cash consideration of 1.08 billion US dollars.

The transactions are expected to complete in the first quarter of calendar year 2025, subject to customary competition and regulatory approvals.

Nippon Steel and JFE Steel will each pay up front, its pro rata share of the aggregate consideration at the completion of its respective transaction.

On completion of both transactions, Blackwater will be owned by Whitehaven, Nippon Steel and JFE Steel via an unincorporated joint venture.

Whitehaven will manage the joint venture.

Nippon Steel and JFE Steel are long-term consumers of metallurgical coal from the Blackwater mine.

As part of the joint venture arrangements, Whitehaven has entered into separate offtake agreements with Nippon Steel and JFE Steel, which consider their equity interests and historical consumption of Blackwater products. The offtake agreements include market-based pricing mechanisms.

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(RADIOCOR) 22-08-24 08:57:50 (0157) 5 NNNN