Amid Pressure, Leading Steelmaking Coal Exporter Reduces Workforce and Closes Mines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 19 2025
0mins
Source: WSJ
Impact on Coal Industry: Australia's steelmaking coal mines are facing challenges due to rising operating costs, falling coal prices, and high royalty rates, leading to layoffs and mine closures.
BHP's Decision: BHP Group announced the closure of a coal mine in Queensland and the reduction of approximately 750 jobs, attributing the decision to high royalty rates and difficult market conditions.
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Analyst Views on BHP
Wall Street analysts forecast BHP stock price to fall
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 68.210
Low
49.50
Averages
56.50
High
68.00
Current: 68.210
Low
49.50
Averages
56.50
High
68.00
About BHP
BHP Group Limited is an Australia-based resources company. The Company is a producer of commodities, including iron ore, copper, nickel, potash and metallurgical (steelmaking) coal. It is focused on offering a range of resources, which provides copper for renewable energy; nickel for electric vehicles; potash for sustainable farming, and iron ore and metallurgical coal for the steel needed for global infrastructure and the energy transition. Its segments include Copper, Iron Ore, and Coal. Its Copper segment is engaged in mining of copper, silver, zinc, molybdenum, uranium, and gold. Its Iron Ore segment is engaged in mining of iron ore. Its Coal segment is engaged in mining of metallurgical coal and energy coal. The Company is also focused on operating Olympic Dam, Prominent Hill, and Carrapateena underground copper-gold mines in South Australia. Its operations are situated in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Critical Minerals Investment: The company is currently undertaking a $2 million flow-through financing to fund exploration at Magno in 2026, while also confirming gold and copper anomalies at its Copeçal Gold Project in Brazil, demonstrating its capability to advance two separate project pipelines simultaneously.
- Market Attention: With the U.S. government mobilizing over $30 billion in critical minerals commitments in just six months, GoldHaven and its peers are at a pivotal moment, as investors closely watch these undervalued companies operating in safe regions, which could drive their stock prices higher.
See More
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See More
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- Metal Price Decline: Traditionally, war boosts demand for precious metals like gold and silver; however, due to the U.S. dollar and bonds being favored as safe-haven assets, metal prices are declining, putting significant pressure on major mining stocks.
- Major Mining Companies Struggle: Shares of Newmont, the world's largest gold miner, fell 13.5% this week and over 25% since the Iran war began; Barrick and Hecla also faced steep declines, with Hecla's stock plunging over 50% from its late-January high.
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See More
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- Rising Operational Costs: Brent crude oil prices have surged more than 50% since the Iran war, leading to skyrocketing operational costs for mining companies, resulting in significant stock declines for major players like Barrick and Hecla, with Hecla's stock down over 50% from its January peak.
- Market Environment Challenges: The metals and mining sector is under immense pressure from high interest rates, rising energy costs, and a stronger dollar, prompting companies like Newmont and Barrick to focus on debt reduction and asset restructuring to maintain financial stability.
- Investor Confidence Tested: Despite increased market volatility, companies like BHP demonstrate resilience with strong cash flows and high margins, suggesting that investors should maintain confidence in fundamental demand to navigate short-term market fluctuations.
See More
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- Signet Jewelers' Strong Rebound: The jewelry retailer reported adjusted earnings of $6.25 per share for the fourth quarter, surpassing market expectations, with revenue at $2.35 billion, reflecting sustained consumer demand for luxury jewelry, which is expected to further drive the company's stock price upward.
See More
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- Rich Leadership Experience: Craig has led BHP's Western Australia iron ore business since 2020 and became President of BHP Americas in March 2022, bringing over 20 years of experience with the company, which is expected to drive continued growth in key business areas.
- Henry's Achievements and Challenges: During Henry's tenure, he reshaped the company by scaling back coal and exiting oil and gas, while acquiring OZ Minerals and Filo Corp. to enhance the copper business; however, he also faced several failed attempts to acquire Anglo American, highlighting the complexities of market competition.
- Market Reaction and Future Outlook: The new CEO's appointment may influence investor confidence, particularly against the backdrop of strategic adjustments made during Henry's tenure, with the market closely watching how Craig addresses future challenges and opportunities.
See More
