“Today, we’ve also been clear about our intent to focus the coal portfolio on higher-quality coking coals and to divest BMC (BHP Mitsui Coal), New South Wales Energy Coal and Cerrejon, which are some great assets and they have growth options, but they’re unlikely to compete for capital within BHP,” Henry said outlining company’s decision to exit thermal coal.
Cerrejon is one of the largest surface mining operations in the world and mines high-quality thermal coal for the export market of about 550 million tons of a year employing more than 12,000 employees and contractors.
BMC owns and operates two open-cast metallurgical coal mines in Bowen Basin – South Walker Creek Mine and Poitrel Mine and is 80 percent owned by BHP with Mitsui and Co controlling 20 percent.
“These are large-scale and long-life assets. They produce good cash flow through-the-cycle and have the potential for value growth, including through productivity-driven volume growth, further cost reductions and embedded expansion options.
BHP is looking at unlocking the value in the assets by selling off, the official indicated.
“We see more upside opportunity in the higher-quality hard coking coals. Whilst we see thermal coal being used by the world for a long period of time, these being great assets, on balance, there’s less upside skewing in the market scenarios that we run than there is for some other commodities,” Henry said.
This story is from the August 2020 edition of Coal Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2020 edition of Coal Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Indian Railways' coal handling up 42% in Q1
Indian Railways in April-June of FY22 transported 157.78 million tons (mt) of coal, up by 42.4 percent from 110.80 mt handled in corresponding quarter of FY21.
There is still a long way to go to squeeze coal out: BP
There are worrying signs that last year’s Covid-induced dip in carbon emissions will be short lived as the world economy recovers and lockdowns are lifted, says Bernard Looney Chief Executive Officer of BP in the recently published Statistical Review of World Energy 2021 published by the company.
“Growing Infrastrcuture is a big opportunity for OTR Tires in India”
India is now considered to be the largest market for Off-the-Road Tires (OTR) used in construction & mining industry. The opening up of the coal sector has provided further push to the potential usage of such tires. And Balkrishna Industries Ltd, a global player with diversified portfolio under the BKT brand across agriculture, industrial, construction, earthmoving, mining and port is set to seize the opportunity. Rajiv Poddar, Joint Managing Director, Balkrishna Industries Ltd., tells Arindam Bandyopadhyay of Coal Insights about the opportunities and outlook for the sector and the company.
Indian Railways' coal handling up 50% till May
Indian Railways in April-May 2021 transported 107.47 million tons (mt) of coal, 50 percent more than 71.55 mt handled in April-May 2020.
Power demand recovery to drive Global Coal & Mining's washery utilisation
Global Coal & Mining Pvt Ltd’s (GCMPL) coal beneficiation volumes are likely to gradually ramp up following recovery in India’s power demand, leading to increased demand for washed coal, India Ratings has said.
New South Wales sees end of thermal power by 2040
“The way we generate energy is set to change as the State’s coal generators progressively reach the end of their useful lives and are replaced with new generation and storage infrastructure.”
Coal in Net Zero era
Year 2020, despite all its nightmarish devastations, provided a vision of a future where there would be much less emission.
CIL's coal production up 1.7% in May
In line with the production growth seen in April, Coal India’s (CIL) coal production in May 2021 was up by 1.7 percent to 42.1 million tons (mt) as compared to 41.4 mt achieved in May 2020, according to (provisional) data released by the company.
India power sector should prepare for climate transition risks
Domestic thermal power sector should prepare itself for the impact of the country’s climate transition scenario of 450GW of renewable energy capacity by 2030, a new report by IEEFA has said.
Traffic handled by major ports up 30% in April
The 12 major Indian ports together handled 30% more traffic at 62 mt in April 2021 over 48 mt recorded for the corresponding month of previous year, according to IPA data.