Australian miner Bowen Coking Coal has begun owner-operator mining at reduced production rates at the Burton mine complex in central Queensland - a move prompted by the current low coal price environment and increased industry costs, including high state royalty rates.
The shift comes as Bowen continues to explore strategic and financial options to support its business through current challenging market conditions.
The company is targeting 0.5 million tonnes (mt) of run-of-mine (ROM) coal at both Ellensfield South and Plumtree North with a strip ratio of less than 3:1 (BCM/t).
The plan involves utilising up to two excavator fleets, a reduction from the previous four, and halting significant waste removal at Plumtree North in the near term.
The decision is crucial for preserving cash reserves and navigating the downturn in coal prices. Bowen has invested A$55m ($36.1m) in the development of Plumtree North, which is now almost complete.
Bowen's transition to an owner-operator model, effective July 2025, follows the expiry of its mining services agreement with BUMA Australia.
The change is part of the company's ongoing strategy to enhance productivity and provide consistent, high-quality metallurgical coal products.
Despite a brief increase in the Platts Australia PLV FOB coking coal price (PLV HCC) to A$195.80/t in May 2025, prices have since declined amidst geopolitical tensions and an oversupply of steel from China.
In July 2025, the price has stabilised at A$177/t. The wider economic slowdown and subdued demand for metallurgical coal have also impacted the market, with a 14% year-on-year drop in seaborne trade volumes.
Bowen remains optimistic about a medium-term price recovery, anticipating an increase after the Indian monsoon season and the commencement of steel mills' restocking processes.
For Australian Thermal 5500 NAR coals, prices have dropped 7% in the June quarter, with transactions at around $67/t, reflecting reduced demand from China and fluctuating US tariff policies.
Bowen is in discussions with multiple parties to secure funding to support ongoing operations. The company has appointed advisors to refinance its balance sheet, aiming to provide operational and growth capital funding, extended debt tenor and balance sheet strength.
As of 11 July 2025, Bowen reported an unaudited closing cash balance of A$45m, including A$19m in restricted cash.
Bowen is also engaging with key stakeholders, including senior secured lenders, a large unsecured creditor and the Queensland Revenue Office to seek relief amid the current market downturn.
