After failing to find a buyer, BHP has decided to retain New South Wales Energy Coal (NSWEC) in its portfolio with plans to cease mining at the Mt Arthur coal mine in 2030.
“Assessment of the resource economics, geotechnical profile and future investment requirements determined that continued mining in the near term and moving to a closure in 2030 provides the optimal financial outcome when compared to alternate options,” said the global miner.
Plans to continue operating Mt Arthur to 2030 are subject to obtaining relevant approvals with the New South Wales and Australian governments to enable mining beyond the current consent of 2026. The company said that rehabilitation of the site will take an additional 10 to 15 years.
The decision to retain NSWEC and its Mt Arthur operation follows the divestment of BHP’s interests in Cerrejón and BHP Mitsui Coal (BMC) in January and May 2022, respectively.
Mt Arthur is an open-cut mine in the Hunter Valley region of New South Wales, Australia, that produces coal for international customers in the energy sector.