Work to complete the acquisition of Daunia and Blackwater mines and transform Whitehaven Coal into a metallurgical coal business is progressing well, according to chief executive officer and managing director Paul Flynn.

He was commenting as the company released its half-year results, showing an underlying net profit after tax (NPAT) of $372.3 million.

“People across our existing operations and the new businesses are highly motivated as integration planning continues and milestones are met,” he said.

Whitehaven Coal is acquiring the Daunia and Blackwater metallurgical coal mines from BMA in a $5 billion-plus deal. This will add to a portfolio of operating coal mines that includes the Maules Creek, Narrabri and Gunnedah sites in New South Wales.

Related: Whitehaven eyes upside for Blackwater, Daunia

The company said more than 95 per cent of Daunia and Blackwater employees had accepted offers of employment and were preparing to integrate into the Whitehaven business once the transaction with BMA closed.

This is expected on April 2, subject to regulatory and merger control approvals.

The Daunia metallurgical coal mine is adjacent to Whitehaven’s $1 billion greenfield project Winchester South. Whitehaven sees this as providing opportunities for future synergies including potential integration of the operations.

The Queensland Department of Environment, Science and Innovation recently approved its environmental authority application for that project.

Meanwhile, the opportunity for a 20 per cent sell down of Blackwater to global steel producers as strategic JV partners is being considered by the new owner.

Whitehaven views the metallurgical coal market as strong.

The anticipated growing structural shortfall in hard coking coal (HCC) production to supply Asian demand, particularly to India, was expected to underpin metallurgical coal prices over the longer term, the company said.

“In the first half of FY24, the PLV HCC index averaged US$298/t reflecting strong demand from steel producers and India’s emerging growth. Whitehaven will benefit significantly from metallurgical coal market dynamics, including the well-supported HCC index, through the Daunia and Blackwater acquisition.”