The mining giant posted a 41% profit jump to $US6.168 billion ($A7.96 billion).

Underlying EBIT for metallurgical coal was $US659 million, a decrease of 30.4% from the same period last year.

“This was attributable mostly to lower prices for all products at Queensland Coal where benchmark prices will again decrease for the 12 months commencing April 2007,” the company said.

Meanwhile, operating costs rose to accommodate the first longwall move at the Broadmeadow mine, in Queensland’s Bowen Basin, and higher strip ratios at opencut coal mines.

The higher costs were only offset partially by increased production and sales at both Queensland Coal and Illawarra Coal.

During the period BHPB thermal coal underlying EBIT reached $243 million, an increase of 18.5% from the same period last year, mainly due to the continued strong demand and higher export prices for South African coal.

Higher production volumes and cost efficiencies at Australia’s Hunter Valley Coal and the Columbian Cerrejon Coal also had a favourable impact.

The company also announced today that chief executive Chip Goodyear would step down at the end of calendar 2007.