As well as the information BHP provided to the stock exchange, the company sent the affected employees a summary of the situation, saying it could take "up to two years" to complete either a sale or a bundling of its unwanted coal assets into a separate listed company.

It did this with its Australian steel businesses, creating OneSteel and Bluescope Steel in 2000 and 2001.

This morning's note to employees said "right now, it's business as usual".

"Importantly, right now nothing changes," employees were told.

"No decisions have been made and it's business as usual across all our coal assets."

While the BHP move will be broadly applauded by a range of environmental lobbies and pressure groups working to end the burning of coal, it has raised concerns over the rehabilitation of the Mount Arthur site once mining eventually ends.

Lock The Gate spokesperson Georgina Woods said there was a substantial risk of an under-resourced company buying Mount Arthur and failing to adequately rehabilitate.

"BHP has made a lot of money out of Mount Arthur," Ms Woods said.

"Now that it has started losing money it wants to turn tail. But BHP still made $9 billion profit overall this year and the Hunter needs its share of that money for environmental repair and economic diversification."

BHP's move to get out of Mount Arthur and its one-third stake in other thermal coal complex - Cerrejon in Columbia, South America - was widely expected.

However the decision to exit the two Queensland mines it owns 80/20 with Japan's Mitsui was not.

In its statement to workers, BHP tried to reassure those involved that it was "business as usual" despite the company's intentions to exit the businesses involved.

"Earlier today, as part of our full year results, BHP announced that we will sharpen our focus on higher quality coking coals, essential for steel-making," the company said.

"This strategy is being pursued as demand for seaborne premium meteorological coal is expected to grow alongside the growth of the steel industry.

"We also announced that BHP will review options to divest some of our coal assets, including New South Wales Energy Coal (NSWEC) and BHP's interests in BMC [BHP Mitsui Coal].and Cerrejon [in Columbia, South America].

"Options being considered include a potential de-merger (to an independent, listed company), or trade sale opportunities.

"Today's announcement is a signal of BHP's intent only and no decisions have yet been made."

The two Queensland mines it intends to get rid of are South Walker Creek Mine and Poitrel.

According to this morning's announcement BHP intends keeping the seven Queensland mines it owns 50/50 with another Japanese company, Mitsubishi, in the BMA (BHP Mitsubishi Alliance) group.

They are (Goonyella Riverside, Broadmeadow, Daunia, Peak Downs, Saraji, Blackwater and Caval Ridge). BMA also operates Hay Point Coal Terminal near Mackay.

BHP says it is keeping the BMA mines because they have higher quality coal than the two BMC mines but the decision to keep them may also reflect the wishes of their joint-venture partner, with Mitsubishi being an equal partner, giving it more say, perhaps, than Mitsui's minority 20 per stake gives it with South Walker Creek and Poitrel.

READ THE FULL STORY IN TOMORROW'S NEWCASTLE HERALD

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