Sojitz Blue – a subsidiary of Japanese producer Sojitz – plans to sell its Gregory-Crinum coal complex to Gemini Gregory Crinum, a new Australian miner, as part of its commitment to leave coking coal markets by 2050.
Sojitz and Gemini aim to complete the sale by 31 March 2027, Sojitz Blue Managing Director Daisei Yamamoto told workers in a 14 October letter seen by Lithos.
“[But] the [deal] depends on [multiple] conditions precedent, [including regulatory approvals, financial assurance arrangements, and third-party consents], being satisfied,” Yamamoto said. Sojitz has not disclosed the sale’s financial terms.
Sojitz will run Gregory-Crinum, without making any operational changes, until it sells the complex. “Health, safety and environmental standards, reporting lines, and site procedures [at Gregory-Crinum] all remain as they are,” Yamamoto said.
“[Sojitz’s] priorities during [the ownership transition] period are the safety of people, continuity of operations, and meeting [community and regulatory] commitments,” Yamamoto added.
Gregory-Crinum is a mixed open-cut and underground coking coal complex. Sojitz annually ships around seven million tonnes of Gregory-Crinum coal from Gladstone Port to Asian and European customers.
Gemini plans to operate Gregory-Crinum as a going concern, according to Yamamoto. It does not expect to launch any broad redundancy schemes at the mine complex, but may cut some roles.
Gemini will also assume all of Sojitz’s Gregory-Crinum-related environmental, mine rehabilitation, employment agreement, and worker entitlement obligations under the deal, Yamamoto said.
“The company is committed to safe and sustainable mining practices, responsible environmental management, and delivering long-term value to [all stakeholders],” Yamamoto added.
Investors registered Gemini Gregory Crinum Pty Ltd with the Australian Securities and Investments Commission (ASIC) on 7 August. But the company formally changed its name to 72FINPOTX51 Pty Ltd on 21 August, according to ASIC.
Sojitz’s Gregory-Crinum sale comes just one month after it briefly suspended production at the coal complex because of a serious accident that hospitalised a worker.
A coal miner sustained injuries at Sojitz’s Crinum mine at around 10 am on 12 September, Sojitz Blue Chief Operating Officer Jacob Sorenson told staff later that day, in a notice seen by Lithos. “Operations at both [the] Crinum and Gregory [mines] have ceased until further notice,” Sorenson said.
But Sojitz resumed Gregory-Crinum production in mid-September after Resources Safety and Health Queensland (RSHQ) lifted a directive to suspend some operations on 16 September, Lithos understands.
“RSHQ is continuing its detailed investigation into the [mine accident] and our thoughts remain with the injured worker and their loved ones,” an RSHQ spokesperson told Lithos on 28 September.
“The safety of coal mine workers is [our] highest priority and we will continue to closely monitor the mine as operations recommence,” the spokesperson said.
By Avinash Govind