(Adds background on coal asset sales)
Aug 7 (Reuters) - Australia’s Wesfarmers Ltd (WES) said on Tuesday it would sell its 40 percent interest in the Bengalla Joint Venture thermal coal mine project to partner New Hope Corporation Ltd (NHC) for A$860 million ($635 million).
Wesfarmers said it would continue to benefit from earnings and cash flow generated from its stake in Bengalla until the transaction was completed, which is expected to close in the fourth quarter of 2018, the company said in a statement.
Upon completion, Wesfarmers said it also expects a pre-tax profit on the sale in the range of A$670 million to A$680 million, subjects to certain adjustments.
The decision to sell its interest in Bengalla follows the completion of sale of Wesfarmers' Curragh coal mine in March.
The sale concludes the review of their resources business started in 2016, the company said in the statement.
Wesfarmers and New Hope own respective 40 percent stakes in Bengalla, while Taiwan's Taipower and Japan's Mitsui 8031.T own 10 percent each. ($1 = 1.3541 Australian dollars)
