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South32 Ltd said on Tuesday it remains on track to sell its Illawarra metallurgical coal asset in the first half next year. Perth, Australia-based diversified mining group late in February agreed to dispose of Illawarra metallurgical to an entity owned by Golden Energy & Resources Pte Ltd and M Resources Pty Ltd for a total $1.65 billion. In a short statement on Tuesday, South32 said this deal remains on track to be completed in first half of its 2025 financial year, subject to the satisfaction of the remaining conditions including Foreign Investment Review Board approval. The miner said BlueScope Steel Pty Ltd has waived its pre-emptive right in respect of the sale of Illawarra Metallurgical Coal. South32 has said the total transaction value represents a multiple of approximately 7.2 times of average annual free cash flow for Illawarra. The buyer will assume economic and operating control of Illawarra on completion of the transaction, including all current and future liabilities. ‘This transaction will realise significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future. It will streamline our portfolio, strengthen our balance sheet and unlock capital to invest in our high-quality development projects in copper and zinc. The transaction will also simplify our business and reduce our capital intensity,’ said Chief Executive Officer Graham Kerr back in February. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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