Wet weather hits BHP’s Jul-Sep coking coal output

Australian resources firm BHP produced 6.7mn t of coking coal in July-September, down by 1pc on the year and by 19pc on the quarter because of the wettest September quarter in 10 years and continuing labour shortages.

The firm maintained its 2022-23 financial year production guidance at 58mn-64mn t.

BHP sold 5.62mn t of metallurgical coal in July-September on an equity basis, up by 3.7pc on year but down by 16.6pc on the quarter. Maintenance activities completed during the quarter included a planned longwall move at Broadmeadow, planned wash plant maintenances at Saraji and Blackwater, and the start of wash plant maintenance at Goonyella in September.

The producer reiterated that the Queensland government's royalty rate increase posed a threat to investments and jobs, further suggesting that it would be challenging to make new investments in Queensland in the absence of competitive or predicable fiscal terms.

Premium hard coking coal prices in the September quarter averaged $250.79/t fob Australia, down by 4pc from a year earlier. Argus assessed the premium hard low-vol coking coal price at $287.30/t fob Australia on 18 October, down by almost 30pc on the year.

BHP completed the sale of its 80pc interest in BHP Mitsui Coal to Australian producer Stanmore on 3 May.

By Cassia Teo

BHP&#39;s metallurgical coal sales mn t Jul-Sep 2021 Oct-Dec 2021 Jan-Mar 2022 Apr-Jun 2022 Jul-Sep 2022 Coking coal 5.42 4.88 6.33 6.73 5.62 Weak coking coal 0.73 0.75 0.81 1.12 0.60 Thermal coal 0.58 0.46 0.48 0.77 0.27 Total 6.73 6.08 7.62 8.62 6.48 Total (100%) 13.45 12.17 15.25 17.23 12.96 Source: BHP

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