- Coking coal output rises by 31% q-o-q
- Thermal coal production falls 13% q-o-q
BHP’s coal (coking and thermal) production for the second quarter (Q2) of calendar year 2025 (Q2CY’25) totalled 9.2 million tonnes (mnt), showing a significant 6.2% growth from 8.6 mnt in Q2CY’24. This y-o-y rise was driven by a significant 4.5% rise in steelmaking or coking coal production and 8.4% rise in thermal coal output.
Coking coal output rises 31% q-o-q
BHP’s coking coal production, managed through the BHP Mitsubishi Alliance (BMA), experienced a significant q-o-q increase of 31.3% in Q2CY’25, rising to 5.2 mnt from 3.9 mnt in Q1CY’25.
The growth was mainly driven by improved mining rates despite persistent geotechnical challenges, with inventory rebuilding and enhanced truck productivity further supporting production gains across BMA’s open-cut mines.
Thermal coal production up 13% q-o-q
Thermal coal production in the second quarter of calendar year 2025 (Q2CY’25) demonstrated a notable increase of 13.1% compared to the first quarter (Q1 CY’25), rising from 3.6 mnt to 4.1 mnt.
The increase in output was mainly due to improved washery plant performance and a strategic inventory drawdown, which together boosted thermal coal production despite ongoing operational challenges.
Production declines in FY’25 amid operational challenges
In the Australian financial year FY’25 (July 2024 – June 2025), net production witnessed a significant decline of 12%, primarily due to adverse weather conditions and operational setbacks. Steelmaking coal production stood at 18 mnt, reflecting a sharp 19% drop compared to FY’24.
However, when excluding volumes from the divested Blackwater and Daunia mines, coking coal production actually increased by 5% y-o-y, highlighting underlying strength in the remaining operations.
Thermal coal production for FY’25 totalled 15 mnt, down 2% from the previous year. The decline was attributed to truck shortages, increased rainfall, and a higher proportion of washed coal, all of which contributed to production pressures earlier in the year.
Looking ahead, the company has issued a production guidance for FY’26, projecting steelmaking coal output in the range of 18-20 mnt. Energy coal production is expected to be between 14-16 mnt, indicating cautious optimism amid ongoing operational recovery efforts.
Outlook
Despite ongoing production challenges, BHP secured approval in April 2025 to extend its NSW operations until 30 June, 2030. While weather and geotechnical issues continue to affect short-term output, the company remains focused on maintaining coal supply reliability and managing operational risks heading into FY’26.
Note: As per BHP’s terminology, coking coal is referred to as steelmaking coal, while non-coking coal is termed energy coal.
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