Whitehaven Coal has sold a 30 per cent stake in its Blackwater mine in Central Queensland for about $1.6 billion.

Nippon Steel Corporation and JFE Steel Corporation have snapped up a joint venture interest of 20 per cent and 10 per cent respectively.

Whitehaven said long-term coal offtake agreements with both parties demonstrated strong demand for the Blackwater operation’s metallurgical coal.

JFE Group already has joint venture interests in several Queensland coal operations, including Byerwen, Sonoma, Moranbah North and Coppabella Moorvale sites. Nippon Steel has a stake in the Moranbah North, Foxleigh and Coppabella Moorvale mines.

“We are delighted to welcome Nippon Steel and JFE Steel as joint venture partners at Blackwater,” Whitehaven chief executive officer Paul Flynn said.

“Both companies have a long and proud tradition of excellence in steel production and have contributed to the economic advancement of Japan and the region more broadly.

“We look forward to working with our new partners as we continue to unlock opportunities at the operation.

“As long-term customers of Blackwater, their co-investment reflects the importance of Blackwater metallurgical coal in the seaborne market.

“The formation of this joint venture with such high quality participants validates the asset purchase by Whitehaven, the coal quality and Whitehaven’s plans as the operator of Blackwater.”

Whitehaven completed its acquisition of BMA’s Daunia and Blackwater metallurgical coal mines in early April.

Meanwhile it is continuing to work on the feasibility studies for the $1 billion Winchester South project, 30km south-east of Moranbah.

Mr Flynn said the proceeds from the Blackwater mine sell-down would further strengthen Whitehaven’s balance sheet, providing enhanced flexibility as it assessed a range of competing opportunities for capital.

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