Coal news and updates

BHP Billiton Thursday said its thermal coal production slumped in the January-March quarter, but output was expected to rebound in the April-June period, allowing the mining giant to meet its fiscal year 2017-2018 (July-June) production guidance.

 

The miner produced 6.12 million mt of thermal coal in the January-March quarter, falling 18% year on year and 16% from the October-December quarter, the company said.

 

The volume of thermal coal produced at its Australian operations in New South Wales declined following unfavorable weather and a significant build in raw coal inventory late in the quarter, BHP said.

 

"This inventory is expected to support an uplift in volumes in the June 2018 quarter," it added. BHP produces thermal coal via the Mt. Arthur mine in the Hunter Valley region of New South Wales.

 

The fiscal year 2017-2018 production guidance for thermal coal is unchanged at 29 million-30 million mt, BHP said.

 

The miner produced 3.66 million mt of thermal coal at New South Wales, down from 4.66 million mt a year ago, and from 4.38 million mt in the October-December quarter.

 

Its Colombian operations saw production of 2.44 million mt of thermal coal in January-March, compared with 2.76 million mt in Q1 2017, and 2.91 million mt during October-December, BHP said.

 

In Colombia, BHP has a one-third interest in Cerrejon, which operates a mine in the La Guajira province.

 

Source: platts