BHP Billiton has up to $US25 billion of non-core assets it could look to sell, according to research by Deutsche.

There is also growing speculation that Rio Tinto Coal would be forced to offload its Hunter Valley mines as part of a $10 billion asset sale to get its balance sheet in order.

“BHP Billiton confirms that consistent with our commitment to simplify the portfolio, we continue to selectively pursue asset divestment opportunities, with a firm focus on value,” a spokesman told ILN.

“Any decision to divest an asset will be announced to the market as required.”

The BHP Billiton Mitsubishi Alliance has already started pruning its Queensland portfolio with the decision to offload the depleted Gregory mine, while keeping its options open to develop the adjacent Crinum underground mine.

The conveyor gantry at Crinum South has been partially dismantled prior to relocation to Gregory to feed the Crinum East product.

In October, BMA closed the Gregory open cut mine because it claimed it was unprofitable in current market conditions.

“BHP Billiton confirms that it is investigating potential divestment of the Gregory Crinum mine complex, located near Emerald in Central Queensland,” a company spokesman told ILN.

“In addition to divestment, the company is assessing options for the Gregory Crinum complex to further extend the operation’s life.”

BHP Billiton reported in February that earnings from its Queensland and New South Wales metallurgical coal mines plunged 106.6%. The company met coal division recorded a loss of $US101 million ($A97.6 million) for the six months to December.

Record sales volumes at Illawarra Coal and a strong recovery in production that followed the conclusion of the BHP Billiton Mitsubishi Alliance enterprise agreements were largely offset by planned wash plant outages at its South Walker Creek and Goonyella mines, the closure of Gregory and Norwich Park and longwall moves at Illawarra Coal.

A respective 39% and 37% fall in hard coking coal and weak coking coal prices reduced underlying earnings before interest and tax by $1.6 billion, net of price-linked costs.

Met Coal revenues were down by 35.8% to $2.8 billion.

For the time being, the company’s energy assets appear safe, but are also facing headwinds.

A 7% increase in thermal coal production in the half year to December was underpinned by record production at New South Wales Energy Coal, which continued to benefit from the ramp-up of the RX1 project.

However, underlying EBIT for the first half of FY2013 declined by $541 million to $246 million.

BHP said a 21% reduction in export coal prices, inflation and a stronger Australian dollar reduced underlying EBIT by $515 million, net of price-linked costs.