MOUNT Arthur open-cut coalmine at Muswellbrook generated more than $US1 billion ($1.4 billion) in revenues for the six months to December 31 as owner BHP benefited from "all-time high" prices and "very strong demand" for power station coal.
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BHP's half-year results on Tuesday showed that although costs had risen more than 7 per cent to $US67.60 ($94.50) a tonne, the company could still book earnings before tax and depreciation (EBITDA) of $US458 million ($640 million) from a mine that lost $US289 million ($404 million) last financial year.
A comparison of previous results shows Mount Arthur's six-month revenues of $US1.07 billion ($1.49 billion) for the first half of the 2022 financial year are more than double the 2021 and 2020 full-year revenues of $US927 million ($1.29 billion) and $US972 million ($1.35 billion).
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BHP exceeded expectations on Tuesday with a company-wide underlying half-year profit of $US9.71 billion ($13.62 billion), acclaimed as one of the strongest results in the storied company's 136-year history.
BHP sold its original steel businesses just over 20 years ago, and has begun selling fossil fuel assets, at least partly as a result of climate-related shareholder pressure.
In August 2020, BHP told the stock exchange it would "pursue options to divest our interests" in the Mount Arthur and Cerrejon (Colombia) thermal coal mines and the South Walker Creek and Poitrel coking coal mines in Queensland.
BHP's one-third stake in Cerrejon has gone to Glencore and Australian miner Stanmore is finalising its purchase of the Queensland operations.
As the Newcastle Herald reported earlier this week, the "all-time high" prices for thermal coal have seen a product selling for no more than $US50 ($70) a tonne midway through 2020 bringing $US260 ($363) a tonne or more last month.
Tuesday's report included an "annualised profit" after tax but excluding finance costs of $US532 million ($743) for Mount Arthur, a substantial turnaround on the loss of $US482 million ($673 million) for the previous half-year.
With coal prices expected to remain high, speculation has emerged that BHP wants to hold onto the again-profitable mine.
BHP chief financial officer David Lamont answered questions about this on Tuesday by saying a two-year review of the mine still had six months to run.
"We are continuing to look at the various different options that actually present ourselves for Mount Arthur."
Mr Lamont foreshadowed more news at the full year results, which BHP usually announces each August.
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