BHP Warns of Tough Decisions for Australian Coal Operations Amid Regulatory Pressures

BHP Group has warned that it may face more “difficult decisions” regarding its metallurgical coal business in Australia if the government fails to make regulatory changes to support the sector. Speaking at the company’s annual general meeting on Thursday, CEO Mike Henry emphasized that without reform, BHP’s coal operations could face further challenges.

Last month, BHP announced plans to suspend operations and cut 750 jobs at a Queensland coking coal mine it jointly owns with Mitsubishi. The decision was attributed to low global coal prices and high state royalties, which have significantly impacted profitability. Henry noted that unless conditions improve, more such measures may be inevitable.

Incoming chair Ross McEwan also addressed the recent critical minerals agreement between the United States and Australia, describing it as a “good start.” The deal, signed earlier this week by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese, aims to strengthen cooperation in the critical minerals supply chain and counter China’s dominance in the sector. McEwan said it was too early to gauge the full impact but called it a promising step forward.

While BHP primarily produces copper, iron ore, and steelmaking coal rather than niche critical minerals, Henry noted that copper’s growing importance in the global energy transition makes it strategically significant. He also highlighted that Australia is well-positioned to help the U.S. diversify its critical mineral sources.

Henry shared that he and executives from Rio Tinto met with Trump and U.S. Interior Secretary Doug Burgum at the White House in August, expressing optimism about America’s renewed push for domestic mining and processing. BHP and Rio Tinto are currently developing the Resolution Copper project in Arizona, which could supply up to a quarter of U.S. copper demand—a key milestone in enhancing energy and resource security for both nations.