The Australian quotes the current boss of the mine: “Mt Arthur Coal has been economically challenged for a number of years and despite a recent price strengthening, we know it is a complex pit to operate. New approvals and significant capital investment to develop into new areas would be required to keep the mine running beyond 2030.” If this is true, it might all be too hard for a new company to buy the mine and try make a go of it.
So the alternative for BHP is to extend the mine's life out to 2030 and dig out the easiest and most valuable coal over the next 8 years. They'll probably make more money doing this than selling out now.
NHC Price at posting:
$3.77 Sentiment: Buy Disclosure: Held
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