As a result, Mr Tanevski said, Australia’s coal exporters had been resilient in 2021, falling only 1 per cent, and were tipped to grow 5 per cent with 2022, with “sky-high” prices contributing significantly to producers’ bottom lines.

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Coal producers have been under intensifying pressure as concerns about the fossil fuel’s contribution to global warming cause investors to retreat from the sector, pushing the cost of capital higher. Meanwhile, as major coal markets in Asia ramp up efforts to slash greenhouse gases, the commodity’s long-term demand outlook is also increasingly uncertain and depends largely on how aggressively countries seek to decarbonise.

Still, in a sign of the fossil fuel’s enduring near-term demand, coal markets rallied in 2021 and have touched all-time highs this year amid a sharper-than-expected post-pandemic rebound in economic and industrial activity colliding with severe global supply shortages.

BHP is seeking to divest from thermal coal – the type of coal used in power generation – but intends to retain metallurgical coal mines that supply the global steel-making industry.

Mr Henry said he believed ties between Australia and China would eventually be restored.

“One has to believe that the complementarity of the two economies is such that in the fullness of time the nations will find a path through this, and we will have a constructive trade relationship between the two nations.”

China is the world’s biggest buyer of the steel-making ingredient iron ore, Australia’s most valuable export.

Despite the challenges, Mr Henry said BHP’s direct business relationships with Chinese customers and suppliers had “never been better”

“We continue to focus on our engagement with Chinese customers and suppliers,” he said.