Wesfarmers announced in a statement this week that it has entered into an agreement to sell a 40% interest in the Bengalla Joint Venture, a thermal coal mine jointly owned by New Hope Corporation.

The 40% stake has been valued at $860 million, with Westfarmers expecting to report a pre-tax profit on the sale of around $670-$680 million.

The Bengalla mine supplies domestic and export markets with thermal coal from its open cut mining operation south west of Muswellbrook in the Hunter Valley region of NSW. It has regulatory approval for up to 15 million tonnes per annum run-of-mine capacity. Bengalla’s coal is used for power generation and is exported primarily to customers based in Japan and North Asia.