MEU delays strike action at Saraji coal mine

Market: Coking coal
14/06/23

A planned strike by Mining and Energy Union (MEU) members working at the Saraji coking coal mine operated by Australian-Japanese joint venture BHP Mitsubishi Alliance (BMA) that was meant to take place on 15 June has been withdrawn.

The strike was planned after OS workers voted down an agreement with BHP in March that included no set pay rates or guaranteed pay rises, MEU said. The planned strike tomorrow will not go ahead because of an administrative oversight by the union. But "the MEU will be back soon enough with another notification [of strike action] for a site or sites in Queensland," a BHP spokesperson said.

The workers that had been due to strike are MEU members employed by BHP Operating Services (OS), the mining firm's labour recruitment arm.

The MEU had indicated that the strike would start at the Saraji mine and "will escalate as necessary across all the mines where OS workers are deployed". The mines include Peak Downs, Goonyella Riverside, Blackwater, Caval Ridge and Daunia.

Strike action would include work stoppages, taking meal breaks at a designated time and location, bans on hot-seating during shift changeovers and bans on driving the company-run buses operating within the pit.

In January, unionised workers at BMA accepted an enterprise employment agreement that brought an end to an industrial dispute at its Queensland coking coal mines.

BHP cut all investment in its Queensland coking coal business last year, in response to the state government's coal royalty rate increase and China's informal ban on imports of Australian coal, which ended in December. But Chinese demand for Australian coal has remained limited amid a weak steel demand environment while rising fuel costs and labour shortages continue to affect margins for seaborne coal producers in Asia-Pacific and the Atlantic. Seaborne coking coal prices rallied following the outbreak of the war in Ukraine, with the Argus daily premium low-volatile coking coal fob Australia price averaging $364.62/t fob in 2022. The index stood at $225.80/t today.

By Siew Hua Seah

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EU may crank up coal and steel research funds in 2027

London, 11 December (Argus) — The European Commission could fund a much larger share of research in the coal and steel industry from 2027, according to a staff working document published yesterday. The EU Research Fund for Coal and Steel (RFCS) would fund 70pc of corporate research and 100pc of academic research into green initiatives if the EU moves forth with the proposal. It currently funds 50pc of both corporate and academic research projects, but has struggled to attract participants or meet its spending targets, noting that the "underspending of the project is rooted in a lack of attractiveness of certain aspects of the programme". RFCS spent 57pc of its €43mn ($50mn) budget for large coal projects and only 31pc of its €208mn budget for steel research from 2021 to 2024. Brussels, troubled by a lack of applications, consulted companies and academics this year and found that its spending requirements were the largest barrier. Most were unable or unwilling to fund 50pc of large research projects themselves. RFCS has supported a number of groups hoping to repurpose old coal mines for clean energy. GreenJOBS and Mine-TO-H2, two funding recipients, both plan on making green hydrogen from mine water, while GrEnMine received pilot funding worth €3.5mn to research new ways to store gravitational energy in abandoned mines. Others, such as REM and GI-mine, are working on new methods to capture methane from coal mines. In the steel sector, RFCS has awarded funds to hydrogen power projects such as ProSynteg and HYDREAMS and research groups such as BIOCODE, which hopes to replace up to 10pc of the coal in coke ovens with biomass. The EU dissolved the European Coal and Steel Community (ECSC) — an agency tasked with making a common European steel market, which eventually led to the creation of the EU — in 2002. The EU used revenues from ECSC assets to launch and fund the RFCS in the same year, and boosted the programme in 2021 by tapping into the assets themselves. By Austin Barnes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia reduces Queensland coal exploration spending

02/12/25

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02/12/25

Australia reduces Queensland coal exploration spending

Sydney, 2 December (Argus) — Australian developers spent A$55mn ($36mn) on coal exploration projects in Queensland — the country's main coking coal-producing region — over July-September, down 7.9pc on the year, marking the fifth consecutive quarterly decline, due to weak prices and high royalties. Mining firms have invested A$145mn in coal exploration projects since the start of 2025, down 22pc on the year, data from the Australian Bureau of Statistics show. Producers in the state have faced elevated royalty rates and coal price volatility this year, reducing incentives for new investment. Argus ' metallurgical coal premium hard low-volatile fob Australia price fell from $200.80/t on 2 January to $166/t on 20 March, before recovering to $189.25/t by the end of September. But the modest April-September price recovery has offered little relief. Australian miners QCoal and BHP both placed Queensland mines into care and maintenance in September, citing coal price weakness and high royalty rates. BHP — which operates mines through the BHP Mitsubishi Alliance joint venture — also told investors on 19 August that the state's royalty regime limits the financial benefit of price increases . The company halted new coal investments in Queensland soon after the government reformed its progressive royalty regime in 2022, which raised marginal royalty rates at most price levels . BHP may not been alone. Whitehaven Coal , which operates mines in Queensland and New South Wales, said in late August that the state's royalty regime encourages producers to invest outside Queensland. Three other producers (see table) have sought royalty relief or downsized operations since early 2025, citing royalty and cost pressures. More broadly, coal producers' spending on business purchases , community payments, and government payments fell by A$5.2bn in the 2024-25 financial year to 30 June. This likely reflects a minor investment decline, as royalty payments also dropped by about A$5bn over the year. Queensland's government has pledged to maintain the state's current royalty regime — introduced before it took office — until at least the next state election in 2028. "[Queensland's] Government is providing certainty for the coal industry in Queensland with faster decisions, streamlined approvals and a stable royalty regime, exactly as we committed before the election," state treasurer David Janetzki told Argus on 2 December. By Avinash Govind Queensland Coal Exploration A$mn Jul - Sep '25 Jul - Sep '24 y-o-y Change (%) Jan - Sep '25 Jan - Sep '24 y-o-y Change (%) Exploration 58 63 -7.9 145 187 -22 Australian Bureau of Statistics Responses to Queensland financial challenges Company Response BHP Placed Saraji South into care and maintanence, avoiding new developments QCoal Closed its Cook Colliery mine Whitehaven Coal Incentivised to direct investment towards New South Wales Coronado Sought royalty relief, negotiated $150mn thermal coal-based financing deal Bowen Coking Coal Sought royaty deferral, entered voluntary administration Bravus Agreed to invest A$50mn into Carmichael mine in exchange for a royalty deferral Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia's QCoal to keep producing after mine closure

02/12/25

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02/12/25

Australia's QCoal to keep producing after mine closure

Sydney, 2 December (Argus) — Australian coking coal producer QCoal will maintain its Northern Hub and Byerwen coking coal complexes in Queensland, after the 28 November closure of its 1mn t/yr Cook Colliery. QCoal's Cook Colliery closure has no impact on its other operations, a spokesperson told Argus on 2 December. The company can produce up to 10mn t/yr of hard coking coal at Byerwen, a joint venture with Japanese producer JFE Steel. It also produces about 6mn t/yr of thermal and hard coking coal at its Northern Hub complex. QCoal closed Cook Colliery's final production unit on 28 November because of high production costs, market pressures and high royalty rates, the company said at the time. It will move the underground mine into care and maintenance, the company added. QCoal closed the Cook Colliery's first production unit for similar reasons in September. The company is not the only Queensland coal producer facing production challenges. Australian producer BHP moved its Saraji South mine into care and maintenance in November because of royalty rates and coal prices. Other Queensland coal producers are also on capital strike but not saying so publicly, Gordon Galt, director at investment firm Taurus Funds Management, told Argus . Their spending on business purchases, community payments and government payments fell by A$5.3bn ($3.5bn) over the July 2024-June 2025 financial year. Queensland's royalty revenue fell by A$5bn over the same period, because of low coal prices. Producers are also looking to sell or secure financing for around six mines because of cost pressures, a market participant told Argus . By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US domestic met coal contracts suggest tough year ahead

26/11/25

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26/11/25

US domestic met coal contracts suggest tough year ahead

London, 26 November (Argus) — As US domestic met coal contract negotiations for 2026 draw to a close, the settlement levels are pointing to a difficult year for US mining firms, with many already having cut high-cost output this year. Alpha Metallurgical Resources has committed roughly 3.6mn short tons (st) of met coal for shipment to domestic customers at an average price of $136.75/st, down from an average settlement price of $152.51/st last year for approximately 3.7mn st. The company logged met coal sales costs at $97.27/st in the third quarter, a reduction of $2.79/st on the quarter. But this still meant a net loss of $5.5mn t in the third quarter of this year. US low-volatile coal domestic contract settlements have been pegged in the mid-$140s/st for 2026, down around $10-15/st from last year, as limited availability has lent support to prices. But with up to 9mn st of high-volatile coal capacity set to enter or re-enter the market next year, the domestic price settlements for high-volatile coal fell around $15-20/st, estimate market participants. The difficult price environment for the seaborne market has meant that more US producers were aiming for a larger share of domestic sales. But with domestic met coal consumption set to be largely stable in 2026, not all producers were able to realise this target. "Most people will be happy with a roll over in volumes for next year but you certainly see more miners fighting for a larger piece of the pie," said one trader. The competitive nature of this year's domestic negotiations has meant that Warrior Met Coal, which typically focuses on the seaborne market, has sold a few holds on a trial basis to a US domestic buyer recently. But this should come as no surprise as Warrior is set to commence operations next year at its Blue Creek facility stream with nameplate capacity of 6mn st/yr, taking the miner's overall capacity to 14mn st/yr. European mills in the middle of contract discussions with the US will have their eye on these settlements as well, hoping to secure discounts on last year. In northwest Europe, many mills have indicated plans to increase steel output next year. This a result of a combination of hope that introduction of carbon border adjustment mechanism (CBAM) regulations will support domestic steel demand while others are ramping up steel output to ensure they retain their carbon allowances for 2027. But on the producer side of the market, warnings continue to intensify on the untenable position current prices place on smaller and higher-cost continuous mining operations. "I don't think we can say that all the capacity coming on line next year will be additional tonnes, some of these would be considered replacement tonnes as more operations fall away," one US supplier said. Thermal coal has also been a bright spot for US producers as domestic demand continues to be strong, supported by demand from energy-intensive data centre operations. "For a change, our thermal mines have been getting us through this trough in the market, and I am sure it's the same for others with thermal operations as well", said one US mining firm source. Despite the current challenges, US met coal producers are optimistic that as US and China relations thaw, the punitive 28pc import tariff that China has placed on US coal imports may be lifted and open the way for exports to China to resume. In 2024, US coking coal exports to China rose to the highest level since 2021, reaching 8.1mn t. But exports completely disappeared this year with the start of higher tariffs. Canada and Russia instead increased their exports to China. By Siew Hua Seah Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cop: Climate Club eyes green steel, cement targets

18/11/25

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18/11/25

Cop: Climate Club eyes green steel, cement targets

Berlin, 18 November (Argus) — Members of the Germany-initiated Climate Club plan to set production targets for green steel and cement by the next UN climate conference Cop 31, Germany's environment minister Carsten Schneider said at this year's Cop 30 in Belem, Brazil, today. Club members agreed in Belem on a global pledge to grow near-zero and low-emissions steel and cement markets, aiming to increase the global market share of green steel through national policies and international co-operation. This could "potentially" lead to setting a quantitative target for both green steel and cement by Cop 31, Schneider said at a Cop 30 side event in Belem. Schneider called this a "good example of how the Climate Club advances lead markets and strengthens the business case for climate friendly production". Cop 31 is scheduled to take place in late 2026, though a location has not yet been decided. The club today also presented a joint statement and roadmap on international assistance and partnerships for green industry transition. Work under the roadmap will focus on areas such as mobilising investments, driving demand for green products, enhancing transparency through carbon accounting, and developing and scaling aligned or harmonised green standards and definitions. The joint statement has so far been endorsed by Australia, Brazil, Canada, Germany, Indonesia, Kazakhstan, Kenya, Sweden and the UK, as well as by organisations including the African Development Bank, international non-profit programme the Industrial Transition Accelerator, the World Bank-backed Climate Investment Funds (CIF), the Green Climate Fund, and the International Renewable Energy Agency. Germany, the UK and the CIF jointly pledged $1.3bn at Cop 29 last year in climate finance for developing low-carbon production processes and green lead markets in developing and emerging countries. CIF chief executive Tariye Gbadegesin said at the side event today that the first seven partner countries, which include Brazil, Mexico and Turkey, may receive up to $250mn of concessional capital, to "unlock additional funding" which could be ten times higher. Green industrial products could be worth over $1 trillion by 2030, Gbadegesin said. Schneider also announced today that Germany, the UK and platform the Global Industry Hub will inject €30mn into a new "industry decarbonisation hubs accelerator", which will be facilitated by the UN's Industrial Development Organisation (Unido) to advance industrial decarbonisation projects in emerging economies. This will allow targeted funding and make decarbonisation projects "bankable", Schneider said. Schneider pointed out the "unique" nature of the Climate Club, in which developed and developing countries collaborate on finding solutions. Most industrial investments will in future be made in the so-called global south, Schneider said, and the Climate Club over the past year was able to support nine countries through its global matchmaking platform, which is run by Unido. The Climate Club now has 47 member states, with Mexico joining today. Schneider welcomed the addition of another "important country", which he said will "strengthen our joint efforts to achieve green industrialisation". The Climate Club in September launched "voluntary principles" for its member countries to address carbon leakage, the phenomenon whereby emissions sources are relocated rather than cut, stressing the need for greater transparency on emissions reporting, and for accepting that countries will pursue different climate policies. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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MEU delays strike action at Saraji coal mine

Related news posts

EU may crank up coal and steel research funds in 2027

EU may crank up coal and steel research funds in 2027

Australia reduces Queensland coal exploration spending

Australia reduces Queensland coal exploration spending

Australia's QCoal to keep producing after mine closure

Australia's QCoal to keep producing after mine closure

US domestic met coal contracts suggest tough year ahead

US domestic met coal contracts suggest tough year ahead

Cop: Climate Club eyes green steel, cement targets

Cop: Climate Club eyes green steel, cement targets

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