The Illawarra longwall complex in New South Wales produces 5 million mt/y.

Illawarra is a longwall mining operation that produces roughly 5 million metric tons per year. The sale also includes South32’s 16.67% shareholding in Port Kembla Coal Terminal, Ltd., near Wollongong. “This transaction will realize significant value for our shareholders and is consistent with our strategy to reshape our portfolio toward commodities critical in the transition to a low-carbon future,” South32 CEO Graham Kerr said. “It will streamline our portfolio, strengthen our balance sheet and unlock capital to invest in our high-quality development projects in copper and zinc.”

Kerr explained that GEAR and M Resources are established operators in the Australian met coal business, with a strong commitment to environmental and safety standards.

The Transaction is expected to close in H1 FY25, subject to the satisfaction of certain conditions including Foreign Investment Review Board. GEAR is an investment vehicle that is focused on resources in Asia Pacific. GEAR’s current major investments include a 59% interest in Stanmore Resources Ltd., an Australian metallurgical coal producer with operations in the Bowen Basin in Queensland, and a 50% interest in Ravenswood Gold, a significant gold mining operation located in northeast Queensland.

M Resources is an investment and marketing company that specializes in the trading of various metallurgical coal products.