BHP Billiton confirms its ‘looking’ to sell Hunter Valley’s Mt Arthur coal mine

It was already common knowledge, but mining giant BHP Billiton confirmed this morning it was set to ‘look at’ selling some of its coal assets including Mt Arthur coal mine near Muswellbrook.

BHP has confirmed its intention to sell Mt Arthur coal mine.

• Drink drivers named and shamed in shocking year
• Former Catholic brother charged with additional offences

The union has said “good riddance to BHP” following news the mining giant is looking to sell some of its coal assets, which includes Hunter Valley’s Mt Arthur coal mine.

A letter to Mount Arthur employees Tuesday morning stated the company was looking to divest coal assets including New South Wales Energy Coal (NSWEC) and was considering a potential demerger or trade sale opportunities.

Other assets in consideration are BMC in Queensland’s Bowen Basin and Cerrejon in Colombia.

But it assured workers no decisions had yet been made.

Mt Arthur coal mine in the Hunter Valley. Photo: Bob Barker.

“Today’s announcement is a signal of BHP’s intent only. It’s very early days and the process may take up to two years to complete,” the statement said.

“If Mt Arthur was to be included in a new company through a demerger, it’s likely we would be part of a sizeable new business with a coal-centric strategy that may enable greater growth and investment options.”

CFMEU Northern Mining and NSW Energy District President Peter Jordan said they’re pleased BHP had finally confirmed what was already common knowledge, and said Hunter Valley coal miners deserved better.

“The Union looks forward to working with a new owner to restore fair working conditions at the site,” Mr Jordan said.

“BHP has been a poor corporate citizen in our region. It has led the mining industry’s charge to outsource good permanent jobs to lower-paid casual labour hire.

“Now it has introduced a fully-owned labour hire subsidiary, Operations Services, that gives employees a BHP shirt but treats them like second class citizens.”

Mt Arthur employees were told of the intent to sell the coal mine through an employee letter on Tuesday morning.

Meanwhile action group, Lock the Gate Alliance believes the eventual Mt Arthur exit will increase toxic rehabilitation risk.

Alliance NSW coordinator Georgina Woods said BHP had a responsibility to rehabilitate the land and close the mine in an orderly manner.

“The world is moving away from thermal coal, and large companies like BHP, which is among the top 100 greenhouse emitting companies of all time, should rehabilitate the land they have carved up for mining and diversify coal mining communities,” she said.

“There is a great risk that less experienced mining companies will move in on these assets and fail to adequately rehabilitate the land.

“Repeat offender and environmental vandal Adani is one of the companies that has been named as showing interest in Mt Arthur. Selling Mt Arthur might make BHP’s greenhouse rap-sheet look better, but the pollution will still be created and leave the Hunter with an even more uncertain future.

Ms Woods said BHP had made a lot of money out of Mt Arthur and now that it had started losing money, it wanted to turn tail.

“The Hunter region deserves some of this year’s $9 billion profit for environmental repair and economic diversification,” she added.

“The community of Muswellbrook could reap the rewards of rehabilitation, yet BHP seems eager to cut and run and flog this asset off to the highest bidder - whoever they may be.

“BHP‘s legacy in the Hunter will be a huge toxic pit lake, hundreds of metres deep and several kilometres long, that will continue to pollute the Hunter River for the next 250 years.”

BHP has been contacted for comment.