Australia’s BCC on track to meet coal sales target

: Coal, Coking coal
25/01/29

Australian coal producer Bowen Coking Coal (BCC) is on track to meet its 1.6mn-1.9mn t sales guidance for the year to June 30, but low stockpiles and rail and port access could hinder the target.

The Queensland coal producer managed record sales of 544,000t of coal in October-December, but cut its stockpiles to 127,000t on 31 December from 172,000t on 30 September. These stockpiles were the lowest end-of-quarter levels since BCC started producing in late 2022, and might need to be rebuilt in January-June, weighing on sales.

Sales could also be impacted by increased vessel arrivals at Dalrymple Bay Coal Terminal, which BCC ships through, and increased wet weather forecast for February-April. BCC is negotiating to secure more port and rail capacity, although it has met its "near-term" requirements.

The firm's managed production ran at a rate of about 3mn t/yr run of mine (ROM) in October-December, down from the 5mn t/yr ROM rate it targeted for 2024 in early 2023, but at the top end of guidance of 2.7mn-3mn t/yr to 30 June.

Wet weather in Queensland has seen the premium for top-grade coking coal decline relative to second-tier hard coking coal owing to lower availability, according to BCC. Argus last assessed the premium hard coking coal price at $185/t fob Australia on 27 January at a premium of $34.95/t to lower-grade hard coking coal. This premium is down from an average of $39.24/t for January and $37.52/t for October-December, but above the $24.59/t average in July-September.

Non-premium hard coking coal prices fell to a $15/t premium to high-grade thermal coal in early September, before widening to nearly $40/t on 24 January. Thermal coal sales made up 42.5pc of BCC's sales in October-December, with the rest coking coal, up from 40pc in July-September. BCC has the option to swing some production between thermal and lower grades of coking coal but this takes time to implement.

Argus last assessed the hard coking coal price at $151.05/t fob Australia on 27 January, down from $157.90/t on 30 December and at the lowest level since June 2021. Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $113.85/t fob Newcastle on 24 January, down from $123.44/t on 27 December.

By Jo Clarke

Bowen Coking Coal (BCC)
	Oct-Dec '24	July-Sep '24	Oct-Dec '23	Jul-Dec '24	Jul-Dec '23

BCC managed production (kt)
ROM	788.8	768.8	785.2	1,557.6	1,425.6
Saleable coal	482.4	443.5	478.7	925.9	1,023.8
BCC sales volumes (kt)
Metallurgical coal	312.8	248.8	264.8	561.5	567.4
Thermal coal	231.1	166.0	238.4	397.1	492.4
Total	543.9	414.8	503.2	958.6	1,059.8
BCC's average realised price ($/t)
Metallurgical coal	165.8	179.2	210.0	171.7	192.0
Thermal coal	88.5	93.4	100.3	138.1	144.7
Argus average prices ($/t fob Australia)
Premium hard low-volatile coking coal	202.6	210.5	333.6	206.5	298.4
Hard coking coal	165.1	185.9	277.0	175.6	250.6
6,000 kcal/kg thermal coal	137.5	138.4	139.8	137.9	147.3
— BCC, Argus

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/03/27

Indonesia raises tax targets for energy, mining sectors

Manila, 27 March (Argus) — Indonesia is aiming to collect higher non-tax state (PNBP) revenue from its energy and mining sector this year, with the country's energy ministry (ESDM) targeting 254.5 trillion rupiah ($15.4bn) for 2024, an 8.6pc increase on the year. The ESDM collected Rp269.5 trillion in PBNP payments last year, surpassing the target collection by 15pc. The minerals and coal mining sector was the biggest contributor, with total revenue collected reaching Rp140.5 trillion, accounting for 52pc of the total. PNBP deposits from the mining and energy sector last year surpassed the 2024 target of Rp113.54 trillion, the ESDM said. The ESDM aims to collect at least Rp124.5 trillion from the mineral and coal mining sector this year. The ESDM said the collections target was set conservatively, and it expects actual remittances to surpass this. The ESDM is currently eyeing an increase in royalty rates for all mining sectors to help increase collections this year, a move that industry participants have decried as they claim that it will have a detrimental effect on business. Coal mining companies have called for the royalty rates to remain unchanged, especially since regulations that were recently implemented that affected their cashflows. They were referring to the use of the coal reference HBA price as an index for export sales , and the extension of the holding period for export proceeds to one year from three months previously. The ESDM will run more frequent and stricter compliance audits on mandatory payments to ensure that PNBP collection targets are met, it said. This will be possible given the integration of the e-PNBP digital collections system with the Mineral and Coal Information System (Simbara), an inter-agency digital platform which allows for tighter monitoring of mining company operations, ESDM added. Miners that fail to remit PNBP collections could be be flagged and penalties ranging from fines to business permit suspensions and terminations could be carried out, the ESDM said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump unveils new tariffs on auto imports: Update

25/03/26

Trump unveils new tariffs on auto imports: Update

Adds details throughout Washington, 26 March (Argus) — President Donald Trump said today he would impose a 25pc tariff on foreign-made cars and trucks imported into the US, but said there will be no tariffs on automobiles assembled in the US. Trump said the new tariffs on imported automobiles marked the "beginning of Liberation Day", the term Trump has used to reference his plan to unveil sweeping tariffs on major foreign trade partners on 2 April. The White House estimates the tariff on imported cars and trucks will generate $100bn/yr in new tariff revenue. Trump said the auto tariff will go into effect on 2 April, providing a financial incentive for automakers to relocate manufacturing to the US. "We'll effectively be charging a 25pc tariff, but if you build your car in the United States, there's no tariff," Trump said in remarks at the White House. "And what that means is a lot of foreign car companies, a lot of companies, are going to be in great shape." The auto tariffs will likely add thousands of dollars to the price of many imported cars and trucks. But the tariffs — the details of which have yet to be released — appears more targeted than Trump's initial plan to impose a 25pc tariff on nearly all imports from Canada and Mexico, because the tariffs would not apply to cars and trucks parts, so long as the vehicles are assembled in the US. "Anybody that has plants in the United States it's going to be good for, in my opinion," Trump said. Ontario premier Doug Ford previously warned that Trump's plan to impose a nearly across-the-board import tariff could have caused auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Trump eventually delayed those tariffs until 2 April. Earlier this week, Trump said that South Korean automaker Hyundai's decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to impose new tariffs on auto imports

25/03/26

Trump to impose new tariffs on auto imports

Washington, 26 March (Argus) — President Donald Trump will announce new tariffs on the automobile industry later today, the White House said, at a time of significant uncertainty about his trade policies. Trump plans to offer further details on the automobile tariffs this afternoon, less than a week before he plans to announce tariffs against major foreign trade partners on 2 April, which Trump has dubbed "Liberation Day". Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Trump last month threatened to impose 25pc tariffs on most imports from Canada and Mexico, starting on 4 March — including imported automobiles and vehicle parts — but he eventually offered a one-month reprieve for US automakers before delaying those tariffs entirely until 2 April. The scope and timing of the upcoming automobile tariffs remains unclear, and the White House has yet to provide further details. But Ontario premier Doug Ford previously warned that steep tariffs on Canada could cause auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Earlier this week, Trump said that South Korean automaker Hyundai's recent decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. "This is the beginning of a lot of things happening," Trump said. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cerrejon to cut coal production by 5-10mn t in 2025

25/03/25

Cerrejon to cut coal production by 5-10mn t in 2025

Bogota, 25 March (Argus) — Colombia's second-largest coal producer Cerrejon will cut thermal coal production by 5-10mn t with immediate effect. This brings its full-year estimate to 11-16mn t for 2025, the Glencore-owned firm said today. The main reason for the reduction is "unsustainable prices for thermal coal transported by sea". Cerrejon produced 19mn t of steam coal in 2024, which means output could fall by 18.75-42pc on the year. Cerrejon has implemented numerous initiatives to respond to the current challenging market conditions, but said the decision to reduce production will help ensure the sustainability of operations and its ability to continue generating revenue for the region and the country. Thermal coal demand has become increasingly focused on Asian markets, including South Korea, India, Japan and China, and freight costs for Colombian coal to reach those markets of around $37/t are considerably higher than the $16-17/t to reach Colombia's traditional markets, such as Europe and Turkey. At the same time, international coal prices have dropped, further reducing Colombian coal's margins, Cerrejon president Claudia Bejarano said last week in Cartagena at the Colombia Genera conference. "We are losing our competitiveness completely," Bejarano said, adding that coal demand in natural markets for Colombia such as Europe is dwindling Argus ' fob Puerto Bolivar NAR 6,000 kcal/kg thermal coal assessment, which forms part of the Colombian API 10 benchmark, was assessed at $85.20/t at the end of last week, down from $93/t at the start of the year — it was as high as $102/t as recently as November. The drop in production will be followed by a reduction in the workforce, a source familiar with the matter said. The company said production cuts will not affect Cerrejon's current social or environmental commitments. The president of Colombian mining agency Alvaro Pardo told Argus that Colombia's thermal coal exports increased by 8.8pc in 2024, but revenues at the country's largest producers declined by 25pc, reflecting the difficult market conditions amid low coal prices and tight margins, Pardo said. Pardo said market conditions will be a factor in ending coal production over the long term, not the government. The government is concerned about falling international thermal coal prices because the operators of the country's large open-pit mines, including Drummond and Cerrejon, may hand back the coal titles to the government, as Glencore did with its Prodeco mine titles in 2021. By Diana Delgado Colombian coal loaded vs landing prices $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Colombia not cancelling coal: Mining authority

25/03/24

Colombia not cancelling coal: Mining authority

Cartagena, 24 March (Argus) — Colombia will honour the terms of coal mining firms' contracts and is not forcing companies out of the industry, which is instead under pressure from market conditions, mining regulator ANM president Alvaro Pardo said. "Today, no thermal coal owner in the country can say that the state violated their rights," Pardo told Argus on the sidelines of the Colombia Genera conference in Cartagena. "We are respectful of their contractual rights." The administration of Colombian president Gustavo Petro has made several anti-fossil fuel statements, and is working on moving to less carbon-intensive energy sources — although it has not included coal in its list of strategic minerals and intends to honour existing coal mining licences until the end of their terms, Pardo said. Instead, market factors are likely to end coal production before the government does, he added. Colombia's thermal coal exports increased by 8.8pc on the year in 2024, but revenues of Colombia's largest thermal coal producers declined by 25pc over the same period, reflecting the difficult market conditions of lower coal prices and tighter margins, Pardo stressed. The government is concerned with the drop in international thermal coal prices because it fears that the large open-pit coal mines including Drummond and Cerrejon may hand back the coal titles to the government as Glencore did in 2021. With global coal prices falling this year, coal demand has also shifted to Asian markets, such as South Korea, India, Japan and China, but freight costs for Colombian coal to reach these markets are around $37/t, compared with $16-17/t to traditional markets such as Europe. "Europe is no longer demanding Colombian coal nor is Chile," Pardo said. When asked whether the government may consider cutting royalties on coal mining firms, Pardo said ANM will not reduce royalties. But the Colombian mining association has stressed that the Colombian mining sector, including coal, has the highest tax rates among peers. The government recently slapped an additional 1pc surcharge on coal exports. The government will not grant new contracts to large open-pit thermal coal mines, Pardo said. The IEA predicts that global coal demand will plateau through 2027, although it reached a record high in 2024 of 8.77bn metric tonnes (t). Anticipating the downturn, the Petro administration is looking at how to convert mining areas to other uses such as for renewable energy, tourism or production of other minerals, Pardo noted. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more