June 24, 2022

Market and Financial News

Market and Financial News Aggregator

BHP winding down thermal coal mine after failing to find a buyer

2 min read

BHP has pulled out of attempts to sell one of Australia’s largest thermal coal mines, choosing to run down the asset over the next eight years as it works to transition away from mining fossil fuels.

The coal mine, located at Mount Arthur in the Hunter Valley region north of Sydney, was put up for sale in 2020. BHP had planned to extend the life of the mine, which supplies power stations in Japan and Korea, to 2045 from 2026, when its original licence ends.

It will now close the site in 2030 after failing to find a buyer. The decision to keep Mount Arthur running comes as prices for high-grade Australian thermal coal trade close to record levels, at around $390 a tonne, according to energy data provider Argus Media.

Europe’s decision to ban coal imports from Russia, which will come into force in August, has further tightened the market. An almost total absence of investment in new markets has resulted in supply lagging demand as big economies in Asia lift their pandemic restrictions.

Coal mining has been the lifeblood of the economy in the Mount Arthur region since the 1960s, and BHP turned the site into one of the country’s largest opencast mines 20 years ago. Around 2,000 people work there and the decision to extend its life beyond 2026 will require government approval.

Edgar Basto, head of BHP’s Australian minerals unit, said: “Seeking approval to continue mining until 2030 avoids closure in 2026 and enables BHP to balance the value and risk of those considerations and our commitments to our people and local communities.”

Coal mining has dominated the political landscape as a result of Australia’s economic dependence on fossil fuel exports. The country is also gripped by an energy crisis with the state government of New South Wales warning of potential blackouts due to generator outages.

It is the second time that BHP has played a significant role in reshaping the region’s economy after it pulled out of its large steel business in Newcastle…



2022-06-16 01:43:22

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.