Following the completion of the sale of Queensland-based Poitrel and South Walker Creek coking coal mines less than a year ago, Australian miner BHP Billiton has launched another divestment of its coking coal assets. Apart from the company's intention to focus on “future-facing” commodities, such as copper and nickel being needed as raw materials in renewable energy and electric car production, the company is aiming to concentrate its coal business on its highest-quality assets. Consequently, on Tuesday, February 21, the company revealed its intention to sell its Blackwater and Daunia coking coal mines. In the 2021-22 fiscal year ending on June 30, the output of the mines in question amounted to 14.65 million mt of the company's total 58.28 million mt of coal production.
Having had taken the decision, the company has linked it to increased coal royalties in Queensland, apart from other factors. "The uncertainty caused by the unplanned increase in royalties did come into play as a contributing factor in our decision-making,” BHP chief executive Mike Henry stated.
As SteelOrbis reported earlier, on June 21, 2202 , the Queensland authorities increased coal royalties to the highest maximum rates in the world. Specifically, the mining companies in Queensland have to pay 20 percent royalty on prices exceeding A$175/mt, 30 percent over A$225/mt and 40 percent over A$300/mt from July 1. Previously, royalties were capped at 15 percent for prices above A$150/mt.