Whitehaven Coal Inks $1.08 Billion Mine Stake Sale as Profit Slides
By Rhiannon Hoyle
Whitehaven Coal said it has signed deals to sell a 30% stake in a newly acquired coal mine to a pair of Japanese steelmakers for a total of US$1.08 billion, as it recorded a sharp fall in annual profit in big part because of a halving in coal prices.
The Australian coal producer on Thursday said Nippon Steel and JFE Steel, both long-term customers of the Blackwater coal mine, will buy a 20% and 10% interest respectively, in deals Whitehaven said will strengthen its balance sheet.
It expects to complete the deals in the first quarter of calendar year 2025.
Whitehaven said its net profit fell by 87% to 355 million Australian dollars (US$239 million) in the year through June, reflecting a pullback in coal prices from record-high levels and higher production costs that more than offset a jump in output.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
August 21, 2024 19:23 ET (23:23 GMT)
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