BHP supply expected to go upper half of the guidance. Click to read more

Metallurgical Coal (Met Coal) Highlights from BHP's Operational Review for the Half-Year Ended December 31, 2024:

1. Production Performance:

   • BHP Mitsubishi Alliance (BMA) produced 8.9 Mt of steelmaking coal, representing a 21% decrease compared to the same period in the previous year.

   • This decline excludes production from the Blackwater and Daunia mines, which were divested in April 2024.

   • Adjusting for the divestment, production increased by 14%, driven by improved strip ratios and increased prime stripping due to higher truck productivity.

2. Guidance:

   • The FY25 production guidance remains unchanged at 16.5–19 Mt (33–38 Mt on a 100% basis), with production now expected in the upper half of the range.

3. Challenges:

   • Production at Broadmeadow was impacted by slower rates due to geotechnical characteristics during a longwall move.

   • Planned raw coal inventory increases are ongoing to improve value chain stability, with a focus on stabilization into CY26.

4. Market and Pricing:

   • The average realized price for steelmaking coal decreased by 23% to US$206.37/t, compared to US$266.43/t in the prior corresponding period.

5. Operational Focus:

   • Efforts are being concentrated on restoring value chain stability, including building up raw coal inventory levels.

6. Future Outlook:

   • The company is focusing on operational excellence and improving productivity across its coal assets to ensure it meets its production guidance in the upper range.