Australia: BHP cuts coal output guidance for FY23 on royalties hike

Australian miner BHP has cut its coking coal production guidance to 58-64 mnt for FY23 against last year’s guidance of 64-68 mnt. This has come in line with the fall in coking coal prices in last two months and expectations of more flooding this year too due to La Nina event. The key reason behind lowering the output guidance was the increase in royalty rates by Australian government which would add to the inflationary pressure for the miner.