The BHP Mitsubishi Alliance is a significant partnership that has been in place since 2006.
BHP and Mitsubishi formed this alliance to develop the Olympic Dam copper-uranium-gold-silver mine in South Australia.
The partnership has been instrumental in the development of the mine, with BHP holding a 54% interest and Mitsubishi Materials holding a 26% interest.
Mitsubishi's involvement in the alliance has brought significant expertise and resources to the project, allowing it to move forward more efficiently.
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BHP Closures and Job Losses
BHP Mitsubishi Alliance has announced a significant job cut, with about 750 coal mining jobs set to be cut in Queensland.
The decision to cut jobs was made due to the state's high coal royalties, which have made the operation less viable.
BHP Mitsubishi Alliance is set to close the Saraji South coal mine.
This news will undoubtedly affect many families in the region, who rely on these jobs for their livelihood.
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Coal Industry Developments
Coking coal prices have been influenced by China's sentiment towards the resource, with a recent surge in prices attributed to reduced imports from China.
The coking coal market has seen fluctuations in recent times, with a notable increase in prices on September 17th due to China's changing sentiment.
China's reduced imports of coking coal have led to a rise in prices, with the market responding to the decreased supply.
The Saraji coal mine has been experiencing cutbacks, contributing to the reduced supply of coking coal in the market.
The BHP Mitsubishi Alliance operates the Saraji coal mine, which has been impacted by the cutbacks.
Coking coal prices are expected to remain volatile in the coming months due to the ongoing supply and demand dynamics.
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Hay Point Terminal Expansion
BHP Mitsubishi Alliance (BMA) is expanding the Hay Point Coal Terminal to support its growth strategies. The terminal is located south of Mackay.
The Hay Point Coal Terminal Expansion Project (HPX3) will increase the capacity of the port to approximately 55 million tonnes per annum (Mtpa). This expansion will enable BMA to accommodate the throughput required to support its growth plans.
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BHP Operations and Challenges
BHP Billiton, the world's biggest miner, operates the BHP-Mitsubishi Alliance (BMA) in Australia, which is the biggest provider of coking coal used in steel making globally.
The BMA operates seven mines in the Bowen Basin, with a normal weekly production of up to one million tonnes of coking coal.
Industrial action by the over 3,000-strong unionized workforce has been ongoing for more than a year, with workers disputing conditions such as housing, safety, and union representation.
The company had foreshadowed in January the prospect of lower volumes due to industrial action and wet weather, but the union stepped up its action a week ago, striking for seven days.
BHP hopes to put a proposed employment contract to workers later this month, but negotiations have reached an impasse.
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The Challenge
BHP's operations face a significant challenge in reducing emissions from their underground operations.
The company aimed to be an industry leader in this space.
BMA, a part of BHP, went to tender for a project that included gas management at their Broadmeadows Underground Mine.
CS GAS was successful in the tender, with a multidisciplinary engineering team designing the solution.
The project required gas drainage, surface facilities at the well head, and centralised processing.
CS GAS was able to commission the plant within a tight 12-month deadline for the entire project.
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Bhp Declares Force Majeure at Australia Mines
BHP Mitsubishi Alliance declared force majeure at its Australian mines due to industrial action and poor weather. This move affects the production of coking coal used in steel making.
The BHP-Mitsubishi Alliance is the biggest provider of coking coal used in steel making worldwide. Its customers are located across the globe, from Europe to Latin America, South Korea, China, and India.
Industrial action by the unionized workforce, which has been ongoing for over a year, has disrupted production. The workers are in dispute over conditions, including housing, safety, and union representation.
The workforce, which is over 3,000 strong, has been striking for the past seven days at the mines. The normal weekly production of the mines is up to one million tonnes of coking coal.
Heavy rain has also impacted production, causing a further reduction in deliveries. The company had previously foreshadowed lower volumes due to industrial action and wet weather.
The BHP spokeswoman confirmed the declaration of force majeure and attributed it to the industrial action and heavy rain.
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Frequently Asked Questions
What's the difference between BMA and BHP?
BMA is a joint venture between BHP and Mitsubishi, whereas BHP is a standalone company. BMA operates as a separate entity, with its own coal mining operations in Central Queensland.
Is BMA part of BHP?
BMA is a joint venture between BHP and Mitsubishi Development Pty Ltd, but BHP holds a 50% stake in the company. BMA is a key part of BHP's global coal operations.
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