The short-term outlook also looks challenging for the company’s resources division, group managing director Richard Goyder said.

“Despite efforts to reduce mining costs, earnings in the resources business were adversely affected by further declines in export coal prices and an unfavourable sales mix as customers sought lower quality metallurgical coal,” Goyder said.

“In addition, after a number of years of positive contribution, the division recorded a $70 million currency hedge book loss for the period, which largely offset the benefit of a lower Australian dollar.”

Low export coal prices, locked-in currency hedge book losses and production impacts due to wet weather in January and February 2016 provide for a very difficult short-term outlook for the resources business, Goyder said.

“In this environment, the resources business will maintain a very strong focus on cost and capital control, and the group continues to look at all options to maximise shareholder value from this business.”