Idemitsu Kosan has sold its majority stake in the Ensham coal mine near Emerald as it pursues a portfolio strategy that has seen recent commitments to Queensland critical minerals and green energy projects.

In the sale announcement today, Idemitsu said the new owners – a consortium called Sungela – would continue to operate the Ensham mine and were committed to site rehabilitation obligations.

The purchase price is $340 million, subject to increase or decrease under a working capital adjustment.

Idemitsu Australia chief executive officer Steve Kovac said the Japanese group had set a global target to be carbon neutral by 2050 and its operations would evolve accordingly.

He said Idemitsu remained committed to continuing to support Ensham’s workforce, the broader Idemitsu workforce and the Central Highlands community through the ownership transition process.

“Idemitsu takes its environmental obligations very seriously, as evidenced by Ensham mine’s extensive rehabilitation program which achieved a major rehabilitation milestone in 2022, transforming a record amount of land used for open-cut mining back to natural and productive land,” he said.

“This resulted in Ensham achieving the largest certified area of progressive rehabilitation in an open-cut mine in Queensland.

“The commitment by Sungela to continue this rehabilitation work and meet the long-term obligations at the site has been a key consideration in the transaction.”

Sungela is a consortium of South African coal company Thungela Resources (75 per cent), Mayfair Corporations Group (12.5 per cent) and Audley Energy (12.5 per cent).

Idemitsu Australia still holds the Boggabri coal mine in New South Wales, producing metallurgical and thermal coal.

It has recently signed a funding agreement with the NSW Government’s EnergyCo, along with joint venture partners AGL, for the development of a pumped hydro electricity scheme on the site of the now decommissioned Muswellbrook mine.

Related: Idemitsu Adds To Its Portfolio Of Australian Mining Investments

Mr Kovac said this was in addition to solar projects at the Boggabri and Muswellbrook sites, as well as the green hydrogen and ammonia export study with the Port of Newcastle and Macquarie Group.

Late last year Idemitsu Australia announced it was also beginning a study on the feasibility of generating and exporting green ammonia from the Port of Abbot Point near Bowen as part of a consortium with CS Energy and Energy Estate.

Idemitsu Australia has also become a major investor in Vecco Group, a private company developing the Debella critical minerals project near Julia Creek and a Townsville-based vanadium battery electrolyte manufacturing plant.

Its subsidiary Idemitsu Lindfield is the largest shareholder in Critical Minerals Group after making a $2.8 million cornerstone investment in the Queensland company’s initial public offering.

The Ensham coal mine is currently 85 per cent owned by Idemitsu, with the remaining 15 per cent owned by LX International through its subsidiary Bowen Investment.

The operation produced approximately 3.2 Mt of high-quality, low-ash and low-sulphur thermal coal in 2022.