Whitehaven Coal has officially completed the acquisition of the Blackwater and Daunia metallurgical coal mines, effectively doubling the size of its business.

The total cash consideration for the acquisition of the Bowen Basin sites from BHP Mitsubishi Alliance (BMA) will be up to $US4.1 billion (about $6.3 billion) plus the final completion adjustment amount.

“This is a great day for our business and the workforces at Blackwater and Daunia, and great news for Queensland,” Whitehaven Coal managing director and chief executive officer Paul Flynn said.

“Whitehaven is a proudly Australian company and we’re committed to the Australian coal sector for the long haul. The completion of this acquisition means real certainty for workers at both sites and for the countless businesses that rely on these mines for economic security.

“We’re delighted that 95 per cent of Blackwater and Daunia employees accepted offers at Whitehaven.

“We’re looking forward to welcoming the team of more than 2100 to Whitehaven and working with the local community and other stakeholders who will remain an important part of both operations.”

Announced in October 2023, the acquisition of Blackwater and Daunia upends the balance of Whitehaven’s coal portfolio. Its sales will now comprise about 70 per cent metallurgical coal and 30 per cent thermal coal.

Daunia is located adjacent to the company’s Winchester South project, and it plans to capitalise on synergies there.

The planned $1 billion Winchester South development recently secured Queensland Department of Environment, Science and Innovation approval for its environmental authority application.

Located 30km south-east of Moranbah, the planned coal mine will produce up to 17 million tonnes per annum of run-of-mine (ROM) material.

The project has been declared a coordinated project, and in November last year the Queensland Coordinator General recommended the project proceed following an extensive assessment process.

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