BHP has achieved record production at its Caval Ridge and Poitrel coal mines in the Bowen Basin in the last financial year.

Metallurgical coal production was down three per cent to 41 million tonnes across its Queensland operations, based on BHP’s stake in the mines.

The total output for the BHP Mitsubishi Alliance and BHP Mitsui Coal operations in Queensland last year was about 73 million tonnes.

BHP highlighted a strong underlying operational performance at its Queensland coal operations, including record underground coal mined at
Broadmeadow and record annual production at Caval Ridge and Poitrel.

However this was offset by planned major wash plant shutdowns in the first half of the year and significantly higher rainfall during January and February 2020 compared with historical averages.

The small decline compared to the previous financial year was a result of those significant wet weather events and geotechnical constraints at South Walker Creek, the company said.

Production is expected to be 40-44Mt (71-77Mt on a 100 per cent basis) in the 2021 financial year, reflecting an expected deterioration in market outlook due to the impact of COVID-19.

It was a good year for BHP iron ore, with the company producing more than 248 million tonnes of iron ore during the 2020 financial year, thanks to record production at the Jimblebar and Yandi mines in Western Australia.

“BHP safely delivered a strong operational performance in the 2020 financial year, achieving record production in a number of our operations, and an improved cost base,” chief executive officer Mike Henry said.

“This performance, achieved in the face of COVID-19 and other
challenges, is a result of the outstanding effort of our people and the support of our communities, governments, customers and suppliers.

“We have sought to support those who rely on BHP through the pandemic with increased hiring, shorter payment terms for small, local and indigenous suppliers, support for contract workers and community
funding for health and social services.”

Mr Henry said BHP expected to continue to generate solid cash flow
and remained confident in the outlook for demand for its products over the medium to long-term.