BHP’s Mt. Arthur bind illustrates mining’s coal dilemma


Some large shareholders are pushing the miner to exit immediately while other investors want a slower exit, to ensure the mine is wound down responsibly.

How BHP, which faces about $1 billion in clean up costs at Mt. Arthur alone, divests could be a template for other miners, including Glencore Plc and Anglo American who are also mulling ways to offload coal assets.

As part of any spin off, think tank IEEFA has proposed BHP set up a $1 billion sinking fund to cover future rehabilitation liabilities

BHP spin-off South32 agreed this month to pay up to A$250 million ($194.70 million) to smooth the sale of its South African thermal coal business, partly funding environmental clean-up costs over a decade.

“The best thing that BHP could…

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