BHP Group, the world’s largest miner by market value, on Thursday reported a 10% rise in third-quarter copper output from a year earlier, and flat iron-ore production. Its output of both steelmaking and energy coal was lower year over year. Here are some remarks from the company’s production report.
On Escondida operations:
“Production increased primarily due to strong material mined, higher concentrator feed grade. Production guidance for FY25 remains unchanged [at between 1.18-1.30 million metric tons] and is now expected to be in the upper half of this range, as strong operational performance across the year offset the challenges of Union No. 1 strike action, sea swells at Puerto Coloso and the national Chilean power outage in February.”
On Escondida outlook:
“Following the site visit in November 2024, we have continued to optimize our growth program schedule to reduce production impacts. It is expected the operation of the Los Colorados concentrator will be extended beyond FY29, without any impact to the remainder of the growth program. We anticipate this extension and other operational measures will increase production across the period from 2027 to 2031 [to between 900,000-1.0 million tons per annum], extending current medium term guidance.”
On Western Australia iron-ore operations:
“Production increased as a result of continued strong supply chain performance, with record volumes delivered from the Central Pilbara hub (South Flank and Mining Area C) following the completion of the ramp up of South Flank in FY24 and a 13% increase in productive movement.
The Port Debottlenecking Project 1, which was delivered in CY24, has continued to unlock improved car dumper and ship loader performance with record nine-month shipments of iron ore. This strong performance was partially offset by the impact of Tropical Cyclone Zelia and Tropical Storm Sean, and the planned increase in tie-in activity of the multi-year Rail Technology Programme.”
On BMA coal joint venture:
“Production increased 5% (excluding the contribution of Blackwater and Daunia in FY24). Strong performance across the open cut mines, underpinned by improved truck productivity and a draw down of inventory, helped mitigate the impact of significant wet weather in the December and March quarters.
At Broadmeadow, we are operating at slower mining rates to safely manage the geotechnical characteristics of the current longwall panel. We expect this will continue into Q1 FY26.”
On New South Wales Energy Coal:
“Production decreased as a result of reduced truck availability, increased wet weather and a higher proportion of washed coal, partially offset by a draw down of inventory.”
Write to Rhiannon Hoyle at [email protected]
(END) Dow Jones Newswires
04-16-25 2356ET
