Bowen Coking Coal Ltd (ASX: BCB) has announced adjustments to its operations at the Burton Mine Complex in response to ongoing challenges in the global steel and coal markets. Bowen Coking Coal has established a significant hard coking coal position in Queensland’s world class Bowen Basin as the company serves the increasing demand for high, quality steelmaking coal around the world. The company stated that owner-operator mining has commenced at Burton with a reduced fleet, focusing on low-cost, low strip-ratio production.
The company is reducing coal production rates at the Burton Mine Complex, citing persistently low coal prices, a higher industry cost base, and high State royalty rates. Operations will concentrate on extracting approximately 0.5Mt of ROM coal from Ellensfield South and Plumtree North, targeting a low strip ratio of less than 3:1 (BCM/t). Bowen has invested $55 million in capital works to date in the Plumtree North mine development, which is now approximately 90% complete.
Bowen is actively exploring various strategic and commercial options to secure funding amidst the current depressed coal price environment. The company has appointed advisors and is in active commercial negotiations with key creditors to recapitalise the business. While discussions with senior secured lenders, a large unsecured creditor and the Queensland Revenue Office remain ongoing.
If coal prices do not improve during the September 2025 quarter, or if sufficient financing initiatives are not achieved, Bowen may pause operations at the Burton Mine Complex. The company maintains an unaudited closing cash and cash equivalents balance of $45 million as of July 11, 2025, inclusive of $19 million in restricted cash.