BHP Says Australian Coal Mines Can’t Compete for Capital
A coal truck at BHP's Mt Arthur coal mine in Muswellbrook, Australia.
Photographer: Ian Waldie/Getty Images
BHP Group told workers at its vast coal operations across Queensland that the mines can no longer “compete for investment” and the company was receiving no returns from the projects.
The mines in the Australian state include some of the world’s biggest for steelmaking coal, which BHP operates in a 50-50 joint venture with Mitsubishi Development Pty Ltd. While they brought in more than $1.67 billion in revenue during the six months through December, they were entirely unprofitable amid lower commodity prices and higher costs, according to BHP.