Coal is a natural resource that most countries capitalize on to run the affairs of their country. Australia is one of the nations of the world that has a large deposit of coal so, today, we will be listing the top biggest coal mine in Australia and all you need to know.
GlobalData’s mining database lists this mine as the top 10bBiggest coal mine in Australia.
Top 10 Biggest Coal Mine In Australia
Loy Yang Mine
Loy Yang Mine in Victoria is a surface mine. AGL Energy owns it and expects to produce 20.934 MTPA of coal from it by 2020. The mine will remain open until the year 2048.
The Moolarben mine
Yanzhou Coal Mining owns the Moolarben Mine in New South Wales. In 2020, the mine’s coal production is expected to be 19.7 MTPA at the surface and underground levels. The mine is scheduled to close in 2030.
Goonyella Riverside Mine
Qualifying for a mining lease at Queensland’s Goonyella Riverside Mine BHP owns the mine, which is expected to produce 17.53 MTPA of coal by 2020. The mine’s lifespan is projected to be 2055.
Mount Arthur Coal Mine
An open-pit mine in New South Wales, Mount Arthur Coal Mine belongs to BHP. In 2020, the mine’s coal production is expected to be 16,052 MTPA. In 2040, the mine will continue to operate.
The Rolleston Mine in Queensland is a surface mine owned by Glencore Plc. An estimated 14.594 million tons of coal will be produced in 2020. The mine is scheduled to close in 2040.
Coal from Australia is reaping big profits for the world’s largest producers.
Last year’s profits from coking and thermal coal from Australia’s top three coal producers, Glencore, BHP, and Yancoal, were substantial. It is estimated that these three companies control about half of the country’s black coal production, and they all claim to have cash margins of about 45%.
Yancoal and an even larger Glencore have replaced Rio Tinto in Australia’s coal industry following the company’s departure from the global coal market. The long-term prospects for coal appear to be bleak, but Rio de Janeiro has decided to bid farewell to the healthy profits that the coal majors are raking in at the moment.
As of 2018, Glencore was the largest Australian coal producer with 76 million tonnes of attributable production. (Attributable production excludes production from Glencore-managed mines that are shared with other joint venture parties.) Australia produces an estimated 447 million tons of black coal each year.
We have Glencore’s full-year 2018 results thanks to their calendar-year reporting period. Because Glencore’s trading activities and assets span a wide range of minerals, the company’s Australian coal results must be examined separately.
From US$1.1 billion to $1.3 billion in revenue, Australian coking coal saw an increase in profits from US$541 million to US$671 million. After deducting operating costs, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) is a key measure of cash earnings.
An increase in revenue of US$4.9 billion and EBITDA profit of US$3.2 billion were recorded by the much larger Australian thermal coal company (up 60 percent ).
Glencore’s coal business has a cash margin of 46 percent, according to the company. A 40-dollar cash profit per tonne overall. A high profit margin is a good thing in any case.
In 2018, BHP, once Australia’s leading coal producer, produced 60 million metric tons of coal, according to its attributable output. In reality, it produces far more than 60 million metric tons in joint ventures. Total profits from BHP’s diversified resources business do not tell us enough about the Australian coal industry. However, just as in the case of Glencore, we can focus on the coal results.
BHP’s financial year ends at the end of June, so its most recent results are for the half-year ending December. Revenue at Queensland Coal increased from $3.35 billion to $3.77 billion, while EBITDA profit grew from $1.5 billion to $1.8 billion. However, NSW Energy Coal’s EBITDA profit fell from US$304 million to US$229 million, even as revenue increased to US$799 million, up from US$750 million. That’s a lot of money coming out of just one mine in the Hunter Valley, Mt Arthur Coal!
BHP claims an overall cash margin of more than 50% for all of its businesses. Iron ore has a cash margin of 59 percent, while coal has a 45 percent margin.
The third-largest coal producer in Australia is now Yancoal. A publicly-traded company in Australia, it is largely controlled by its Chinese majority owner Yanzhou. We can examine Yancoal’s overall performance because, unlike BHP and Glencore, it is focused on Australian coal production. Instead of reporting in U.S. dollars, as BHP and Glencore do, this company reports in Australian dollars.
With total revenue of $4.85 billion and 50 million tonnes of coal sold, the company made a net profit of $852 million and an EBITDA profit of $2.2 billion. The cash margin is 45 percent, which is an excellent cash flow ratio.
With their combined ownership of 42 percent of Australia’s black coal production, these three companies effectively command well over half the market. A 45 percent cash margin has been mentioned by all.
Although not every manufacturer will make the same high profits, these figures show a sector that is making a lot of money. Coal prices have fallen, resulting in lower earnings and profits for 2019. This is despite the fact that these three companies all claim that they will be profitable for years to come
This data comes from GlobalData’s mines and projects database, which tracks all operational and developing mines and projects worldwide. Four thousand global giants rely on the data that GlobalData, Verdict’s parent company, provides. So, that is all we have for you on the listing of Top 10 biggest coal mine in Australia.