- Moranbah rebound offsets weak output from Aquila, Dawson
- Asset sale advances; completion expected by Q1CY’27
Anglo American reported a marginal 1% decline y-o-y in steelmaking coal production during Q2CY’26 (ended 30 June 2026), as difficult mining conditions at Aquila and lingering weather-related disruptions at Dawson continued to weigh on output.
However, a strong sequential recovery at Moranbah North and improved production from Capcoal helped the company post a significant q-o-q rebound. Despite the improvement, first-half production remained well below year-ago levels. The company is also progressing with the sale of its Australian steelmaking coal business, with completion targeted in Q1CY’27.
Production dips 1% y-o-y in Q2, H1 output declines 17%
Anglo American’s attributable saleable steelmaking coal production stood at 2.03 mnt in Q2CY’26, marginally down 1% y-o-y from 2.06 mnt but up 32% q-o-q from 1.55 mnt recorded in Q1CY’26. On a cumulative basis, H1CY’26 (January-June) production declined 17% y-o-y to 3.58 mnt, compared with 4.3 mnt in H1CY’25.
The company attributed the weak annual performance to challenging geological conditions at Aquila and the continued impact of the significant weather event that affected the Dawson open-cut operation earlier this year. These losses were partly offset by the continued ramp-up of Moranbah North following the March 2025 incident and improved production from the Capcoal open-cut mine.
Moranbah North drives recovery as Aquila, Dawson remain weak
Among individual operations, Moranbah North delivered the strongest performance, with production increasing 238% y-o-y and 135% q-o-q to 459,000 t, as the mine continued its post-incident recovery.
In contrast, Aquila (including Capcoal) produced 1.06 mnt, down 18% y-o-y and broadly unchanged from the previous quarter, reflecting persistent strata-related mining challenges. Dawson produced 513,000 t, down 18% y-o-y, although output recovered 84% q-o-q following disruptions experienced in Q1CY’26.
Product mix shifts towards PCI, semi-soft coal
The company’s production mix changed during the quarter, with hard coking coal accounting for 77% of total output and PCI/semi-soft coking coal contributing 23%, compared with an 85:15 split in the corresponding quarter last year. Anglo American said the higher share of PCI and semi-soft coal reflected the sequencing of coal flows from its open-cut operations.
Sales volumes, realised prices remain under pressure
Steelmaking coal sales declined to 1.92 mnt in Q2CY’26, down 13% y-o-y, while H1CY’26 sales fell 12% y-o-y to 3.39 mnt, primarily reflecting lower production and reduced saleable volumes.
Hard coking coal sales decreased 17% y-o-y to 1.41 mnt, driven by weaker output, while PCI/semi-soft coking coal sales remained broadly stable at 514,000 t, indicating relatively resilient demand for these grades. Meanwhile, export thermal coal by-product sales dropped 24% y-o-y to 253,000 t, mainly due to lower by-product availability following reduced overall coal production.
Sale process progresses; completion expected by Q1CY’27
Anglo American reiterated that it has entered into a definitive agreement to sell its remaining Australian steelmaking coal portfolio to Dhilmar for up to $3.875 billion, subject to regulatory approvals. The company expects the transaction to be completed by the first quarter of 2027. As the steelmaking coal business has been classified as an exiting business, no production guidance has been provided for 2026.
Operationally, Moranbah North is expected to continue ramping up following its recovery from the 2025 incident, while Aquila’s performance will largely depend on improvements in mining conditions.
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