The additional charges are associated with up to $150 million of writedowns in its coal business and up to $100 million for redundancies, partially offset by the reversal of earlier writedowns of up to $125 million due to a slight recovery in commodity prices.

Metallurgical coal production for the 2016 financial year increased by 1% to a record 43 million tonnes.

Queensland Coal production was flat as record production at five mines, underpinned by increased plant and equipment availability and utilisation, offset the completion of longwall mining at Crinum, a convergence event at the Broadmeadow mine and unfavourable weather conditions.

Record quarterly production resulted in a 17% increase in volumes from the March 2016 quarter.

Queensland Coal production is forecast to increase to 44Mt in the 2017 financial year.

“This improvement will be supported by delivering higher wash-plant and truck hours which will more than offset the closure of Crinum,” the company said.

A longwall move at Broadmeadow and wash-plant shutdown at Saraji are scheduled for the September 2016 quarter.

Metallurgical coal production is expected to increase to 44Mt in the 2017 financial year despite the planned divestment of IndoMet Coal.

First production from the Haju mine in Indonesia was achieved during the 2016 financial year. On 7 June 2016, BHP Billiton entered into an agreement to sell its 75% interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro).

Completion of the sale is conditional upon the fulfillment of customary regulatory approvals.

Energy coal production for the 2016 financial year decreased by 16% to 34Mt.

Energy coal production is forecast to decrease to 32Mt in the 2017 financial year as productivity improvements at New South Wales Energy Coal partially offset the divestment of our New Mexico Coal assets.

New South Wales Energy Coal production for the 2016 financial year declined by 13% due to the impact of heavy rainfall, the progression through a higher strip ratio zone and rescheduling of the mine plan based on individual pit economics.

Cerrejon volumes declined by 11% as drought conditions in the first nine months of the year

followed by heavy rainfall in the June 2016 quarter constrained production.

Navajo Coal production for the 2016 financial year decreased by 18% as a result of lower customer demand.

The transfer of management and operatorship for Navajo Coal to Navajo Transitional Energy Company remains on track for 31 December 2016.

The sale of the San Juan Mine to Westmoreland Coal Company was completed on 31 January 2016.

The group expects to record an exceptional item for global taxation matters of between $150-200 million in the June 2016 half year, including litigation associated with BHP’s role in the deadly Samarco disaster in Brazil.

In relation to the failure of the Fundao tailings dam at its Brazilian iron ore operations, BHP has warned that it is not yet in a position to provide an update to the potential financial impacts on the company.

In May the Brazilian Federal Prosecution Office commenced proceedings against Samarco, Vale and BHP for RL155 billion ($A64 billion) for social, environmental and economic compensation relating to the Samarco dam failure, and last month the Superior Court of Justice in Brazil blocked ratification of a framework agreement with the Brazilian government to settle claims associated with the disaster.

As with any tragedy, Samarco is one that could stain BHP’s ledger for years.

BHP says so far almost 60% of homes and buildings in the Mariana region have been completely rebuilt or restored and some 800 hectares of areas have been reforested and 10 tributaries of river margins have been cleaned and contoured.