BHP Group PLC (LON:BHP) has joined Rio Tinto PLC (LON:RIO) in warning that a tropical cyclone that crashed into Western Australia’s coast will hurt full-year production at its Pilbara operations.
BHP said it is reviewing its 2019 guidance of 273-283mln tonnes and cost forecast but an initial estimate is for a 6-8mln tonne reduction in output.
READ: Rio Tinto cuts 2019 iron ore shipments outlook from Pilbara due to disruption and damage caused by cyclone Veronica
The group's port and rail operations in Port Hedland, West Australia, were suspended after Cyclone Veronica battered the country's west coast in late March, bringing heavy rainfall and strong winds.
BHP is now ramping up production but at reduced rates due to flooding at the site and on sections of the rail leading into the port, which has limited train movements.
"Final production impacts and revised production and unit cost guidance will be disclosed once they are finalised," BHP said.
"We are engaging with our customers and intend to meet our contractual commitments."
The news comes a day after Rio Tinto revealed the extent of the damage on production that the storm had caused. The miner had said damage at Port Lambert A, together with a fire at a screening plant at the port in January, would hit shipping output by about 14 million tonnes.