Whitehaven Coal has concluded the acquisition of the Daunia and Blackwater metallurgical coal mines in Queensland, Australia, from the BHP Mitsubishi Alliance (BMA), a joint venture between BHP and Mitsubishi Development.

The transaction, which will see Whitehaven Coal purchasing the coal mines for up to $4.1bn (A$6.45bn) in cash, was conducted through two of Whitehaven’s subsidiaries.

This deal was announced in October last year.

At closing, Whitehaven Coal paid BMA $2bn in cash along with a preliminary completion adjustment of $44.1m for working capital.

The company will make additional payments over the next three years, amounting to $1.1bn.

These payments will be made in tranches, with $500m due on both the first and second anniversaries of the deal’s closing and $100m on the third anniversary.

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Moreover, a price-linked contingent payment of $900m was agreed upon, to be paid in three tranches over the same period.

With the deal’s closure, Whitehaven Coal takes on both the economic and operating control of the mines, including all existing and future environmental liabilities and rehabilitation obligations.

The company also placed a $100m deposit, which could have been retained by BHP and Mitsubishi if the acquisition had not proceeded.

The proceeds from this sale will be directed towards reducing its net debt.

Whitehaven Coal managing director and CEO Paul Flynn said: “This is a significant milestone for Whitehaven that transforms us into a leading metallurgical coal producer and will deliver benefits for all of our stakeholders.

“I thank the teams at Whitehaven, BMA, BHP and Mitsubishi and our advisors who have worked hard to help us complete this strategically important acquisition. We are well placed to execute a smooth transition and to integrate the Daunia and Blackwater mines into the Whitehaven portfolio.

“We are excited to welcome the teams at Daunia and Blackwater into our business and we look forward to working with the local community and other stakeholders who will remain an important part of our operations.”