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BHP pumps out the coal, despite China ban, as it readies for megatrends

Business

BHP has warned that the China trade bans on its coal were likely to remain in place for “a number of years” while its iron ore division hit record production levels and the company said it was positioned for the coming global megatrends.

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BHP, Queensland’s biggest coal producer through its BMA and BMC joint ventures, said production at the Goonyella mine and its BMA operations for the year was at record levels despite the ban from China.

However, total production was down slightly for the year and its guidance for 2022 was for between 39 million tonnes and 44 mt, compared with the 40 mt for the 2021 year.

“BHP is in great shape,” chief executive Mike Henry said.

“Our operations are performing well, we continue to track record of disciplined capital allocation and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth.

BHP also listed the cost of COVID impacts for the year to be $US150 million to $US200 million.

It said the hard coking coal average price for the year was $US118 a tonne for the June half and $US112 for the year, a 22 per cent decline on the 2020 price which could be attributed to the China impacts.

BHP said it expected “restrictions on coal imports to China to remain for a number of years”.

The issue is not likely to be helped by the Federal Government’s decision to join the US and UK in attributing the blame for a massive hack on Microsoft on China.

Its iron ore average price for the year was up almost 70 per cent to $US130 a tonne.

 

 

 

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