BHP rules out selling Queensland coal despite royalty dispute

BHP Group has ruled out selling its Queensland metallurgical coal business, BMA, despite a royalty dispute. CEO Brandon Craig said the company will boost investment in the business if the Australian state’s royalty regime is softened. BHP’s fiscal year 2025-26 production rose 3% to 18.6 million metric tons, with an average realized price of $210.21 per metric ton – up 8% from the previous year.

BHP’s results stated that BMA expects to deliver 43-45 million metric tons of production and reduce unit costs to under $120 per metric ton over the medium term. BHP’s CEO believes the business has "firmly believed its best years are in front of it." However, the Queensland royalty regime makes investing major capital in the business economically problematic, with BHP paying "up to a 67% tax rate on the business." BHP is preparing to invest capital to improve the productivity of BMA if fiscal conditions improve.