Australia's BHP raises coking coal output in FY2025-26

Australian mining company BHP mined 18.6mn t of steelmaking coal at its Queensland mines in the July 2025-June 2026 financial year, up by 3.4pc on the year, the company said on 16 July.

The mining company's production increased because of strong performance at its open cut operations, which delivered the highest stripping volume in five years, the company said. Improved wet weather operating performance also allowed them to partially mitigate the impact of higher-than-average rainfalls, weather-related mine sequencing impacts on yield, and ongoing geotechnical challenges at its Broadmeadow mine in Queensland's Bowen basin.

Production at the company's Goonyella, Peak Downs and Caval Ridge mines rose on the year, the company said of its steelmaking coal output, which is reported on the basis of saleable product. But output at its Saraji mine fell by 3pc on the year to 3.95mn t in the 2025-26 financial year.

The coking coal mines are run by the BHP Mitsubishi Alliance (BMA), a partnership between BHP and Japanese producer Mitsubishi. The production figures represent BHP's share of BMA's output.

BHP also increased its production over April-June this year, with production coming in at 5.65mn t compared with 5.14mn t in the same period a year earlier.

Output for the July 2026-June 2027 financial year is expected at 18.5mn-20.5mn t, BHP said, representing steady-to-increased production from its mines compared with that of the 2025-26 financial year.

The Argus-assessed Australian coking coal experienced volatility in the first half of 2026 given that weather-related force majeure events raised the premium hard low-volatile coking coal on a fob Australia basis price to as high as $253.10/t fob on 4 February, marking the highest level since 5 July 2024 at $254/t fob. Argus last assessed the price at $229.30/t fob on 15 July.