The world's biggest miner BHP Billiton Ltd says it has struck a deal to acquire 100 per cent of the New Saraji project from New Hope Corp Ltd for $2.5 billion cash and $1.2 billion worth of BHP shares in a 50/50 joint venture with Mitsubishi Corp.
"This acquisition is consistent with our strategy to accelerate growth in long life, low cost natural resources with a focus on delivering shareholder value," said BHP Billiton coal president Dave Murray.
New Saraji is an undeveloped metallurgical coal resource located next to the joint venture's Saraji mine near Dysart in Queensland's Bowen Basin.
"New Saraji has extensive high quality metallurgical coal resources," said Mr Murray.
"Subject to the results of further resource exploration and evaluation program to be undertaken by BMA, New Saraji has the potential to be developed into a large scale, high quality metallurgical coal operation."
"New Saraji could also potentially deliver significant synergies due to its proximity to BMA's existing Saraji mine," Mr Murray said.
The acquisition is likely to be scrutinised by regulators and third parties, BHP said.
Before the announcement, BHP shares closed down 4.4 per cent at $37.55
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