BHP's coking coal production drops 16% in Q3CY23

BHP Mitsubishi Alliance's (BMA's) coking coal (100% basis) production for Q3CY23 was recorded at 11.2 mnt, dropping by 16% as against 13.3 mnt recorded in Q3CY22.

Production dropped amid planned maintenance at the Goonyella wash plant, limited mining activities in higher strip ratio areas, an extended longwall move at Broadmeadow, and a stoppage at Peak Downs. Despite these obstacles, BMA managed to partially offset the production drop through strong truck productivity and favourable weather conditions. Moreover, the period started with depleted inventory levels, further impacted by a drawdown from the previous year due to adverse wet weather conditions.

In contrast to the decline in coking coal production, BHP's thermal coal production in Q3CY23 was recorded at 3.6 mnt, up by 38% rise as compared to 2.6 mnt in Q3CY22.

BHP Mitsubishi Alliance (BMA) sells two coking coal mines to Whitehaven

BHP Group Ltd announced the sale of its two coking coal mines in Queensland, Australia to Whitehaven Coal Ltd. Black Water Mines have a capacity of 12 mnt/year and the Daunia coking and thermal coal mines hold a capacity of 4 mnt/year. These mines supply metallurgical coal to steel manufacturers, including India and China.

Guidance for FY24 (July 2022- June 2023)

The FY24 guidance for coking coal remains unchanged at 56-62 mnt on a 100% basis. However, challenges are expected to continue into the second quarter due to planned wash plant maintenance at Peak Downs and Caval Ridge, alongside the ongoing ramp-up of production at Broadmeadow following the longwall move. It is anticipated that these challenges will be overcome, and the underlying operating performance will lead to increased production in the second half of the fiscal year. BHP's guidance for thermal coal production in FY24 remains unchanged at 13-15 mnt.