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BHP Coal Update for 2020 FY

Coal News - Published on Wed, 22 Jul 2020

Image Source: BHP Coal
Metallurgical coal production was down three per cent to 41 million tonne, 73 million tonne on a 100 per cent basis, as a result of significant wet weather events in the prior quarter and geotechnical constraints at South Walker Creek. Production is expected to be between 40 and 44 million tonne, 71 and 77 million tonne on a 100 per cent basis in the 2021 financial year, a similar level to the prior year as it reflects an expected deterioration in market outlook due to the impact of COVID-19. With Blackwater returning to full capacity towards the end of the September 2020 quarter after flooding in the March 2020 quarter, volumes will be weighted to the second half of the financial year. At Queensland Coal, strong underlying operational performance, including record underground coal mined at Broadmeadow and record annual production at Caval Ridge and Poitrel. was offset by planned major wash plant shutdowns in the first half of the year and significantly higher rainfall during January and February 2020 compared with historical averages. Blackwater, our largest mine, was the most severely impacted, with mining operations stabilised during the June 2020 quarter and a return to full capacity expected towards the end of the September 2020 quarter.

Energy coal - Energy coal production decreased by 16 per cent to 23 million tonne. Production is expected to be between 22 and 24 million tonne in the 2021 financial year. Further potential impacts from COVID-19, including weak demand, represent possible downside risk to the 2021 financial year guidance.
NSWEC production decreased by 12 per cent to 16 Mt as a result of the change in product strategy to focus on higher quality products and unfavourable weather impacts from December 2019 to February 2020. This was partially offset by a strong performance in the June 2020 quarter driven by record truck utilisation. Production is expected to be between 15 and 17 million tonne in the 2021 financial year. Cerrejbn production decreased by 23 per cent to 7 million tonne due to a temporary shutdown during the June 2020 quarter in response to COVID-19, as well as a focus on higher quality products, in line with the mine plan. The temporary shutdown lasted for approximately six weeks and allowed for completion of COVID-19 control measures to meet the Colombian Government s regulations. Production is expected to be approximately 7 million tonne in the 2021 financial year.

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Posted By : Yogender Pancholi on Wed, 22 Jul 2020
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