- Steelmaking coal output drops 12% q-o-q
- Energy coal production falls 3% q-o-q
BHP’s coal production for the first three months of CY’25 totalled 7.5 million tonnes (mnt), showing a sharp 26% decline from 10.2 mnt in Q1CY’24. This y-o-y drop was driven by a significant 35% decrease in steelmaking coal production and a 13% fall in energy coal output.
Steelmaking coal output drops 12% q-o-q
BHP’s steelmaking coal production, managed through the BHP Mitsubishi Alliance (BMA), dropped q-o-q to 11.5% in Q1CY’25, to 3.9 mnt compared to 4.4 mnt in Q4CY’24. However, excluding the divested Blackwater and Daunia mines, production rose by 5%.
The decline was primarily due to adverse weather conditions and geotechnical challenges at the Broadmeadow mine.
While the production guidance for fiscal remains at 16.5-19 mnt, output is now expected to be closer to the lower end of the range.
Energy coal production falls 3% q-o-q
Energy coal production in Q1CY’25 fell by 2.7% q-o-q, to 3.6 mnt from 3.7 mnt in Q4CY’24. Despite this, the production guidance for fiscal remains at 13-15 mnt, with output expected to fall within the upper reaches of this range.
The decline was caused by limited truck availability, increased rainfall, and a higher proportion of washed coal, among other factors.
Outlook
BHP is striving to address challenges in coal production, though reduced mining rates at Broadmeadow are expected through Q1FY’26. The New South Wales (NSW) government’s approval to extend operations until 30 June 2030 will help ensure long-term stability.
As such, BHP remains well-positioned to ensure reliable coal supply and manage operational challenges into FY’26 and beyond.
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