Illawarra Coal is now under the new Perth-based South32, taking the 2016-targeting, $A845 million Appin Area 9 longwall project off BHP’s almost non-existent coal project pipeline.

All that is left is the $1.5 billion Hay Point Coal Terminal stage three expansion project (BHP 50%). Designed to lift the export capacity from 44 million tonnes per annum to 55Mtpa this project is also considered 96% complete.

While BHP has managed to cut its coking coal-focused Queensland coal unit costs from $US69 a tonne to $67/t in the recent half year, the weak coal market is not making an impression on the company’s capital expenditure plans.

“We do not expect BHP to invest in its coal division over the medium term,” JP Morgan said.

Coal is considered one of the four pillars of the new BHP business model post the S32 spinoff.

However, JPM has noted that coal represented just 1% of its projected fiscal year 2016 earnings before interest and tax pie for BHP, compared to 46% for iron ore, 35% for copper and 18% for the combined petroleum and potash division.

Coal also accounted for 7% of JPM’s net present value pie for BHP with iron ore taking 51%, P&P at 24% and copper at 18%.

While the S32 spinoff held business divisions that BHP wanted to divest, various brokers have given the new miner buy ratings.

BHP shares, which opened at $30.18 each ahead of the S32 float last Monday, hit a low of $28.52 on Wednesday as low for that week and remained below $29.50 on Friday.