BHP Downgrades Full-Year Coal Targets, Reviewing Nickel Plans

By Rhiannon Hoyle

BHP Group on Thursday said it expects to produce less coal used to make steel this fiscal year, and at a higher cost, following a challenging first half for its coal-mining operations in Australia.

The world's biggest miner by market value also said it is evaluating options for its Australian nickel business to help it ride out a downturn in prices for the industrial metal.

BHP said it now expects to produce between 23 million metric tons and 25 million tons of metallurgical coal in the year through June, 2024, down from an earlier projection of between 28 million and 31 million tons. It consequently raised its annual estimate for so-called unit costs to between $110 and $116 a ton, from between $95 and $105 a ton before.

At its Nickel West business, BHP said operations are "being actively optimized" and that an assessment of the carrying value of the assets is ongoing.

"The nickel industry is undergoing a number of structural changes and is at a cyclical low in realized pricing," the company said. "Nickel West is not immune to these challenges."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 17, 2024 17:16 ET (22:16 GMT)

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