Bowen Coking Coal has wound back production rates at the Burton complex in Central Queensland as it grapples with low coal prices and high royalty rates.

Operations would focus on low-cost, low-strip ratio tonnages using up to two excavator fleets rather than four, the company said.

‘This decision has not been taken lightly, but is essential for Bowen to conserve cash reserves, allowing time to navigate the current depression in the coal price cycle,’ it said in an update to the ASX.

The company warned last month that it may have to halt operations due to financial pressures, and its latest update to the market outlines ongoing efforts to shore up funding as well as seeking relief from parties including the Queensland Revenue Office.

Related: Potential pause on horizon as coal miner’s margins slashed

The company is now working under an owner-operator model after BUMA Australia’s contract mining services agreement ended last month.

The September quarter will see it mining the new Plumtree North pit and the Ellensfield South pit, both within its Burton complex.

It plans no further significant waste removal in the near term at Plumtree North, where it has invested $55 million in capital works to date.

Box-cut excavation works at Plumtree North commenced in August last year and development is now about 90 per cent complete.

Bowen Coking Coal said it was continuing to look into funding avenues in the face of soft steel and metallurgical coal markets.

In addition, it said it was continuing to seek relief through commercial discussions with senior secured lenders, BUMA and the Queensland Revenue Office.

‘If coal prices do not improve during this September 2025 quarter, or if sufficient financing initiatives being actively pursued are not achieved, operations at the Burton mine complex may be paused,’ the company said.

A suspension on trading in Bowen Coking Coal shares was lifted today after the company released further information on its plans.

The company’s Burton mine complex near Moranbah includes the Ellensfield South and Plumtree North mines, a coal handling and preparation plant (CHPP) and train loadout facility. The co-located Lenton and Issac pits are undeveloped open-cut projects.

Bowen’s other assets include the Broadmeadow East mine near Moranbah and the Bluff Mine near Blackwater, which are both under care and maintenance.

The company also holds the Isaac River, Hillalong, Cooroorah, Carborough, and Comet Ridge coking coal development projects and is a joint venture partner in Lilyvale and Mackenzie with Stanmore Resources.

As at July 11, Bowen maintained an unaudited closing cash and cash equivalents balance of $45 million, inclusive of $19 million in restricted cash.

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