May 29 (Reuters) - Australia's South32 Ltd S32.AX said on Tuesday it will acquire a 50 percent stake in the Eagle Downs metallurgical coal project from state-owned China BaoWu Steel Group for an upfront payment of $106 million.
The acquisition, through which the miner will become the project operator, includes a deferred payment of $27 million and a coal price linked production royalty of up to $80 million, South32 said in a statement.