BHP Group PLC (LON:BHP, ASX:BHP) said total iron ore production grew 4% to 188 million tonnes (Mt) in the nine months to end March 2021, helped by record output at Western Australia Iron Ore (WAIO) and expects volumes for the year to come in at the upper half of the 244 Mt to 253 Mt guidance range.
The world’s largest listed mining company said WAIO production rose 3% to a record 187 Mt for the nine months due to the highest ever output at Jimblebar and a strong performance across the supply chain, even as bad weather hampered operations in December 2020 and the first two months of this year.
However, bad weather led the FTSE 100-listed miner to lower full-year forecasts for coal.
Metallurgical coal, also known as coking coal, guidance was cut to between 39 and 41 Mt (previous estimate 40-44 Mt) as a result of significant wet weather during the December 2020 and March 2021 quarters.
Energy coal guidance was reduced to between 18 and 20 Mt (previous estimate 21-23 Mt) as a result of significant weather impacts at New South Wales Energy Coal (NSWEC) and lower-than-expected volumes at the Cerrejón open-pit coal mine in Colombia following a strike and Coronavirus (COVID-19) restrictions.
BHP raised its copper guidance to between 1.535 Mt and 1.660 Mt on a stronger-than-expected performance at Escondida in Chile. Unit costs for Escondida were lowered to be between US$0.95 and US$1.10 per pound, due to higher production and lower deferred stripping costs.
Its production guidance for the 2021 financial year remains unchanged for petroleum, even as total petroleum output fell 8% to 76 million barrels of oil equivalent in the nine months.
BHP also provided an update on its project pipeline. The Bass Strait West Barracouta gas project achieved first production in April 2021 and is on schedule and budget, it said, adding its major projects under development are also progressing to plan.
The Ruby project in Trinidad and Tobago is progressing ahead of schedule and on budget, with first production on track for May 2021. South Flank is tracking well with commissioning activities planned for the June 2021 quarter and is on schedule for first production in the middle of the 2021 calendar year. Jansen Stage 1 project remains on track for Final Investment Decision in the middle of the 2021 calendar year.