BHP Billiton has formally surrendered its right to build a new $US5 billion coal terminal at the port of Abbot Point on the north Queensland coast, as part of its response to persistent weakness in global coal markets.

The world’s biggest miner declared its intention to cease work on all growth projects in its Queensland coking coal business, except for those in execution, due to the economic climate in September last year. Two weeks ago, the company reached a final agreement with the North Queensland Bulk Ports Corporation that it would not go ahead with the development of terminal two (T2) at Abbot Point.