The severe storm and floods in Australia last month that even halted loading activities at Newcastle port for few days has made major miners to cut their coal production guidance whereas COVID-19 safeguards measures have also made a few of them to trim their forecast for 2021.
BHP slashes coal production guidance at both the mines
Australia headquartered mining major, BHP has cut its thermal coal production guidance for fiscal 2020-2021 (July-June) on the back of a strike at its Colombian Cerrejon mine and weather impacts in the Australian state of New South Wales, the company said.
Production guidance at the NSW operations was dropped to 14-15 mn t from 15-17 mn t. The guidance for Cerrejon was reduced from roughly 6 mn t to 4-5 mn t, the miner said in its quarterly results.
Production from the NSW assets stood at 3 mn t in the January-March period, having dropped 22% from a year earlier and having shed 8% q-o-q, BHP said. Cerrejon production stood at 1.8 mn t for the three months to March, which is 9% lower y-o-y, but 417% higher q-o-q basis.
Anglo American cuts thermal coal guidance drastically
London headquartered Anglo American, thermal coal production in South Africa decreased by 25% to 3.1 mn t in Jan-Mar’21 quarter, as company’s operations were impacted due to second wave of Covid-19 in the country, and also because its Bokgoni pit at Khwezela have been placed on care and maintenance.
In Colombia, company’s export thermal coal production decreased by 9% to 1.8 mn t owing to a controlled Covid-19-safe ramp-up following the three-month strike which ended in December 2020.
Reflecting the proposed demerger of the South African coal business, thermal coal guidance has been downgraded to 14 mn t from 24 mn t for 2021, Anglo American said.
The company has cut full-year guidance for metallurgical coal to 14-16 mn t from 18-20 mn t due to the suspension at Moranbah North in Queensland, Australia and geotechnical conditions and delayed access to Grosvenor, also in Queensland.
Whitehaven coal also trims its production guidance
Australia’s largest independent miner, Whitehaven has also slashed its annual managed coal sales forecast for the second time in two months, lowering it to a range of 17.8-18.3 mn t from 18.5-19.0 mn t.
In March, Whitehaven had lowered the range from its initial 19.0-20.0 mn t forecast as torrential rains shut rail networks to a key port in New South Wales, disrupting deliveries.
Continued geological challenges at the Narrabri mine have resulted in unscheduled down time and additional longwall equipment repairs, the miner said.
The company managed coal production of 4.3 mn t in Q1 2021 against 4.1 mn t in same time last year.
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