Australian resources company Stanmore Resources has agreed to purchase the remaining 20% stake in a metallurgical coal joint venture (JV) in Queensland, Stanmore SMC, from Mitsui for $380m.

The deal comes months after Stanmore acquired an 80% holding in BHP Mitsui Coal (BMC), which was later renamed as Stanmore SMC, for a total consideration of $1.35bn in cash.

BMC was formed by BHP Group and Mitsui to focus on the development and operation of three coal assets in the Bowen Basin.

Under the latest agreement, Stanmore Resources’ wholly owned subsidiary Dampier Coal will pay $380m upon deal closing.

The deal, subject to the approval of Australia’s Foreign Investment Review Board (FIRB), is planned to be closed in Q4 2022.

SMC will become a 100% owned entity of Stanmore when the deal concludes.

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Stanmore Resources CEO Marcelo Matos said: “Following the previous acquisition of the majority interest in SMC from BHP, this Transaction allows Stanmore to consolidate its position as a leading metallurgical coal miner in the Bowen Basin.

“Having 100% control of South Walker Creek and Poitrel, as well as Wards Well and other projects, allows Stanmore to maximise value amongst our assets in the region.”

The acquisition forms part of Stanmore’s investment strategy to develop existing operations while maximising synergies from its existing infrastructure.

SMC currently owns two mines, which produce coking coal used in iron and steel production.

The sale is in line with Mitsui’s efforts to restructure its business portfolio.

Mitsui said in a statement: “The Mitsui will continue to work toward the realisation of a sustainable society through a balanced approach that combines the reliable supply of coking coal, for which demand is expected to remain steady, with contribution to the development of a low-carbon society.