SURFACE

BHP struggles to contain Qld coal cost of production

BHP Billiton’s Queensland Coal unit is hoping to bring its cost of production down to US$57 per tonne of coal after it increased 14% to $68/t in FY2018.

The BHP Billiton Mitsubishi Alliance's Broadmeadow longwall mine in Queensland.

The BHP Billiton Mitsubishi Alliance's Broadmeadow longwall mine in Queensland.

Unit cost guidance for the FY2019 year is expected to balloon between $68 per tonne and $72/t as a result of an 8% increase in strip ratios, higher diesel prices, local inflationary pressures and an extensive maintenance program planned for the six months to December 2019. 
 
Lower volumes from its Broadmeadow longwall mine and Blackwater open cut mine cost the company $263 million in FY2018.
 
"Operational conditions at Broadmeadow and Blackwater improved significantly in the June 2018 quarter," BHP said.
 
"In the medium term, we expect to lower our unit costs to approximately US$57 per tonne." 
 
The Queensland coal unit reported revenues of $7.3 billion for FY2018, compared with $6.3 billion for the previous corresponding period and net costs of $2.8 billion compared to $2.3 billion previously. 
 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.