Mitsui & Co., Ltd. ("Mitsui", President and CEO: Tatsuo Yasunaga) has entered into respective agreements with New Hope Corporation Limited to sell its 10% interest in the Bengalla Joint Venture ("Bengalla JV") in New South Wales, Australia for A$215 million. The transaction will be subject to regulatory approval and pre-emption rights under the Bengalla JV Deed. Mitsui expects to record gain from sales for this transaction, but the amount and the timing will vary in accordance with various factors such as the fluctuation in the FX and the completion date. The expected gain from this transaction is not included in the revised forecast for the fiscal year ending March 2019, which was announced on October 30, 2018.
Bengalla JV, which is currently owned 70% by New Hope Corporation Limited, 20% by Taiwan Power Company and 10% by Mitsui, produces mainly thermal coal for coal fired power plant and general industry. As a result of this transaction, Mitsui's equity production of coal will decrease by approximately 0.9 million ton / year. For thermal coal, Mitsui has the corporate strategy to refrain from accumulating new assets while existing assets are under thorough review for divestiture possibilities.
1. Profile of Bengalla Joint Venture
|Location||New South Wales, Australia|
|Production||9 million ton / year|
|Product||Domestic and export thermal coal for utility power plant|
2. Profile of New Hope Corporation Limited
|Company Name||New Hope Corporation Limited|
|Business||Operation of coal mines in Australia|