BHP doubles down on steelmaking coal as BMA returns rise

BHP has reaffirmed its commitment to its Queensland steelmaking coal business, with CEO Brandon Craig saying some of the commodity’s best years could still lie ahead.“The best years of met coal (steelmaking coal) are potentially still ahead of us, and we want to stay in this commodity,” Craig said during an analyst question-and-answer session on Tuesday after BHP released its full-year financial results.“We don’t have any plans for separating met coal from the business at the moment,” he added.BHP Mitsubishi Alliance (BMA) – the miner’s 50-50 joint venture with Mitsubishi Development, reported a 19% increase in underlying EBITDA to $700m for the year ended June, helped by higher realised steelmaking coal prices and increased sales volumes.BHP expects BMA production of 37 million to 41 million ton (Mt) on a 100% basis in FY2027, rising to 43Mt to 45Mt annually over the medium term.Unit costs, which increased 5% to $134.05 per ton in FY2026, are targeted to fall below $120 a ton over the medium term.Craig said BHP saw scope to improve BMA’s returns through cost reductions, its operating system, technology and automation.Queensland’s coal royalties remain another consideration. BHP said in its results that the state’s royalty regime was not supportive of long-term capital investment in steelmaking coal assets, even as the scarcity value of higher-quality coal could increase.Craig told analysts that the miner would continue engaging with the Queensland government and was not necessarily seeking a return to historical royalty rates, but hoped for a “mutually beneficial” outcome.“We would like to see this happen sooner rather than later,” he said, while adding that he could not predict when an agreement might be reached.Craig, who took over as CEO last month, also identified replenishing BHP’s resource base as a priority, with a greater focus on exploration, partnerships and opportunities adjacent to existing operations.Copper drives growthCopper remains BHP’s main growth engine, accounting for 54% of group underlying EBITDA in FY2026. Copper underlying EBITDA rose 48% to a record $18.2bn, with the business generating $6.9bn in free cash flow.The miner said copper remained BHP’s biggest growth opportunity in Australia and Argentina, with organic development currently taking priority over acquisitions, although the company would not “categorically rule out M&A”.BHP’s project pipeline could lift attributable copper production by around 40% to about 2Mt per annum by FY2035.BHP expects global copper demand to increase from about 34Mt annually to more than 50Mt by 2050, driven by economic growth, the energy transition and digitalisation.The post BHP doubles down on steelmaking coal as BMA returns rise appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com