BHP says coal needs community support

BHP Billiton coal chief Mike Henry has acknowledged the mining giant needs to do more to restore profitability and secure community support.

The Caval Ridge coal mine near Moranbah

BHP's head of coal says more needs to be done to win the PR war against environmentalists. (AAP)

BHP Billiton's head of coal says more needs to be done to win the PR war against environmentalists.

Plunging prices have put the coal industry under immense financial pressure, and there are no signs of things getting better in the immediate term, BHP's Coal President Mike Henry told an American Chamber of Commerce lunch in Brisbane.

The industry therefore needs to build stronger community support and focus on productivity as it strives to return to profitability.

"We can only hope to secure balanced support for the industry if we step up and help improve the quality of debate and the depth of understanding about what we do, why we do it and how important it is," Mr Henry said.

Prices for metallurgical coal have fallen by as much as 30 per cent in 2015, and thermal coal prices are 15 per cent lower.

Significant productivity improvements and regulatory reforms would allow the industry, which supported 152,000 jobs, to be competitive in the long term, Mr Henry said.

BHP's coal profit fell 39 per cent to $US348 million in the 2014/15 financial year amid weaker Chinese demand.


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Source: AAP


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