BHP share price: Miner concerned over China’s coal tariffs

on Oct 14, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Tuesday, October 14: BHP Billiton (LON:BLT) has voiced concerns over China’s move to impose a tariff on coal imports.

In a bid to support its domestic sector, the world’s second-largest economy announced last week that from tomorrow coal imports would face a tax of between three and six percent, depending on the type of coal. The news stunned Australia’s coal industry, which is struggling with low prices and tough market conditions.
BHP labelled China’s decision as ‘worrying’ and called for a constructive resolution of free-trade talks to safeguard Australia’s global competitiveness.

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Dean Dalla Valle, the head of BHP’s coal division, said in a statement yesterday that the group was watching the China situation closely. “We are disappointed. We would subscribe to free and open trade,” he said, as quoted by The Australian newspaper. “It is too early to tell (the impact) … it is something we are worried about and we are watching it closely,” he added.

Dalla Valle spoke at the opening of BHP’s $3.4 billion Caval Ridge mine in Queensland’s Bowen Basin, which was delivered below budget and ahead of schedule in partnership with Mitsubishi Corp (TYO:8058) ( ). Australia’s prime minister, Tony Abbott, also attended the event. He was informed of BHP’s concerns over China’s import tariffs.

Abbott said he was also disappointed by the announcement of the new tax. “We support lower tariffs and free trade and obviously we are disappointed that this tariff has come on,” Abbott commented, adding that he hoped a free trade agreement would be reached at, or before, the G20 meeting in Brisbane next month.

**BHP share price on the up**
BHP’s shares have been trading in positive territory so far today. By 10:24 BST, the stock had gained 0.69 percent to 1,672.00p.
According to the FT, as of 10 October 2014 the consensus forecast amongst 51 polled investment analysts covering BHP has it that the company will outperform the market.
**As of 10:29 BST, buy BHP shares at 1,674.00p.**
**As of 10:29 BST, sell BHP shares at 1,673.50p.**

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