Australian company BHP is targeting the upper end of its 13 million to 15 million tons thermal coal production forecast for the financial year spanning July 2023 to June 2024. Despite disruptions caused by floods, the New South Wales Energy Coal (NSWEC) production rose from 3.61 million tons in July-September to 3.86 million tons in October-December 2023. Anticipating robust production in January-June, the total output for the fiscal year 2023-24 is expected to approach the upper limit of the guidance.
During July-December, NSWEC fulfilled its commitments under the New South Wales (NSW) government's thermal coal reservation policy by supplying 538,000 tons of coal to domestic consumers. BHP aims to deliver an additional 178,000 tons in January-June to meet its obligations for the entire 2023-24 financial year. Meanwhile, BHP's application to extend the mine life of the 20 million tons per year Mount Arthur mine is set to extend through June 2024. The company plans to close the mine instead of selling it.
In terms of pricing, the average coal price for NSWEC was $123.29 per ton in July-December 2023, marking a decrease from $157.21 per ton in January-June 2023 and $354.30 per ton in July-December 2022.
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