Metallurgical coal
– Metallurgical coal production decreased by five per cent to 19 Mt (34
Mt on a 100 per cent basis). Guidance for the 2021 financial year
remains unchanged at between 40 and 44 Mt (71 and 77 Mt on a 100 per
cent basis) with a stronger second half performance projected in line
with our plans. Volumes are expected to be at the lower half of the
guidance range following significant wet weather impacts during the
December 2020 quarter. We continue to monitor for any potential impacts
on volumes from restrictions on coal imports into China.
At Queensland Coal, volumes were lower as a result of planned wash plant
maintenance at Saraji and Caval Ridge and significant wet weather
impacts from La Niña across most operations. South Walker Creek
production decreased largely due to higher strip ratios and lower
yields. Poitrel was also impacted by lower yields during the period.
Energy coal
– Energy coal production decreased by 30 per cent to 8 Mt. Following a
strike at Cerrejón, guidance for the 2021 financial year has been
reduced to between 21 and 23 Mt from between 22 and 24 Mt.
NSWEC production decreased by seven per cent to 6.9 Mt. This decrease
reflects significant weather impacts and higher strip ratios, as well as
lower volumes due to an increased proportion of washed coal in response
to reduced port capacity, following damage to a shiploader at the
Newcastle port in November 2020, and widening price quality
differentials. Guidance for the 2021 financial year remains unchanged at
between 15 and 17 Mt.
Cerrejón production decreased by 68 per cent to 1.4 Mt due to a 91-day
strike that started on 31 August 2020. During the period, Cerrejón
successfully completed negotiations with Sintracarbón and signed a new
Collective Labor Agreement, effective from 1 July 2020 to 31 December
2023. Operations restarted in the first week of December 2020 and are
continuing to ramp up. The impact of the strike was 1.5 Mt. Guidance for
the 2021 financial year has been reduced to approximately 6 Mt from 7
Mt.
Table 1: Coal Production
|
Dec Q20 |
Dec Q20 vs Dec Q19 |
Metallurgical coal (kt) |
9,522 |
(13%) |
Energy coal (kt) |
3,576 |
(41%) |
Table 2: Coal Production Summary
Production(kt) |
BHP interest |
Quarter ended |
Year to date |
Dec 2019 |
Mar 2019 |
Jun 2020 |
Sep 2020 |
Dec 2020 |
Dec 2020 |
Dec 2019 |
Coal |
Metallurgical coal |
Production (kt) (1) |
BMA |
50% |
8,723 |
6,869 |
9,078 |
7,365 |
7,539 |
14,904 |
15,628 |
BHP Mitsui Coal (2) |
80% |
2,201 |
2,353 |
2,536 |
2,325 |
1,983 |
4,308 |
4,654 |
Total |
|
10,924 |
9,222 |
11,614 |
9,690 |
9,522 |
19,212 |
20,282, |
Energy coal |
Production (kt) |
Australia |
100% |
3,763 |
3,810 |
4,887 |
3,624 |
3,229 |
6,853 |
7,355 |
Colombia |
33.30% |
2,315 |
1,978 |
767 |
1,038 |
347 |
1,385 |
4,370 |
Total |
|
6,078 |
5,788 |
5,654 |
4,662 |
3,576 |
8,238 |
11,725 |
Note:
(1)Metallurgical coal production is reported on the basis of saleable
product. Production figures include some thermal coal.
(2) Shown on a 100% basis. BHP interest in saleable production is 80%.
Table 3: Coal Production and Sales
Production (kt) |
Quarter ended |
Year to date |
Dec 2019 |
Mar 2020 |
Jun 2020 |
Sep 2020 |
Dec 2020 |
Dec 2020 |
Dec 2019 |
Queensland Coal |
Production (1) |
BMA |
Blackwater |
1,734 |
1,063 |
1,703 |
1,184 |
1,737 |
2,921 |
2,779 |
Goonyella |
2,662 |
1,963 |
2,651 |
2,312 |
2,152 |
4,464 |
4,151 |
Peak Downs |
1,386 |
1,339 |
1,635 |
1,487 |
1,213 |
2,700 |
2,809 |
Saraji |
1,325 |
1,025 |
1,399 |
817 |
1,043 |
1,860 |
2,539 |
Daunia |
579 |
447 |
588 |
490 |
464 |
954 |
1,135 |
Caval Ridge |
1,037 |
1,032 |
1,102 |
1,075 |
930 |
2,005 |
2,215 |
Total BMA |
8,723 |
6,869 |
9,078 |
7,365 |
7,539 |
14,904 |
15,628 |
Total BMA (100%) |
17,446 |
13,738 |
18,156 |
14,730 |
15,078 |
29,808 |
31,256 |
|
BHP Mitsui Coal (2) |
South Walker Creek |
1,196 |
1,577 |
1,264 |
1,238 |
1,118 |
2,356 |
2,574 |
Poitrel |
1,005 |
776 |
1,272 |
1,087 |
865 |
1,952 |
2,080 |
Total BHP Mitsui Coal |
2,201 |
2,353 |
2,536 |
2,325 |
1,983 |
4,308 |
4,654 |
Total Queensland Coal |
10,924 |
9,222 |
11,614 |
9,690 |
9,522 |
19,212 |
20,282 |
Total Queensland Coal (100%) |
19,647 |
16,091 |
20,692 |
17,055 |
17,061 |
34,116 |
35,910 |
Sales |
BMA |
Coking coal |
7,179 |
6,417 |
7,547 |
6,187 |
6,531 |
1,275 |
13,737 |
Weak coking coal |
971 |
644 |
1,040 |
977 |
936 |
1,913 |
1,605 |
Thermal coal |
30 |
224 |
183 |
58 |
3 |
61 |
124 |
Total BMA |
8,180 |
7,285 |
8,770 |
7,222 |
7,470 |
14,692 |
15,466 |
Total BMA (100%) |
16,360 |
14,570 |
17,540 |
14,444 |
14,940 |
29,384 |
30,932 |
|
BHP Mitsui Coal |
Coking coal |
596 |
677 |
778 |
671 |
604 |
1,275 |
1,337 |
Weak coking coal |
1,504 |
1,691 |
1,756 |
1,545 |
1,518 |
3,063 |
3,336 |
Total BHP Mitsui Coal |
2,100 |
2,358 |
2,534 |
2,216 |
21,22 |
4,338 |
4,673 |
Total Queensland Coal |
10,280 |
9,643 |
11,304 |
9,438 |
9,592 |
19,030 |
20,139 |
Total Queensland Coal (100%) |
18,460 |
16,928 |
20,074 |
16,660 |
17,062 |
33,722 |
35,605 |
NSW Energy Coal, Australia |
Production |
3,763 |
3,810 |
4,887 |
3,624 |
3,229 |
6,853 |
7,355 |
Sales |
Export thermal coal |
3,952 |
3,403 |
4,871 |
3,168 |
3,940 |
7,108 |
7,027 |
Inland thermal coal |
- |
- |
- |
- |
- |
- |
567 |
Total |
3,952 |
3,403 |
4,871 |
3,168 |
3,940 |
7,108 |
7,594 |
|
Cerrejón, Colombia |
Production |
2,315 |
1,978 |
767 |
1,038 |
347 |
1,385 |
4,370 |
Sales thermal coal - export |
2,261 |
2,028 |
1,143 |
994 |
370 |
1364 |
4,330 |
Source from the official website of BHP |
|