BHP reports a mixed bag

PERTH (miningweekly.com) – Diversified major BHP has seen production in the first quarter ended September drop across most of its commodities, apart from copper, compared with the fourth quarter of the 2023 financial year.

Copper production in the three months to September increased by 11% to 457 000 t, with production from Escondida, Pampa Norte, and South Australia all increasing.

For the 2024 financial year, BHP is targeting copper production of between 1.72-million and 1.91-million tonnes.

“First quarter operational performance was highlighted by a 11% uplift in copper production from the previous year. After completing a typically busy quarter of planned maintenance, particularly at our Australian assets, we are on track to achieve full-year production and unit cost guidance. BMA in particular was impacted by planned maintenance, an extended longwall move and low opening inventory following drawdowns in the prior year,” said CEO Mike Henry on Wednesday.

Iron-ore production in the first quarter ended September fell by 3% on the previous quarter, to 63.2-million tonnes, with the lower production relating to the tie-in activity for the Rail Technology Programme, the ongoing ramp-up and maintenance at the central Pilbara hub, including South Flank and Mining Area C, and the timing of track renewal maintenance.

The South Flank mine remains on track to ramp up to full production capacity of 80-million tonnes a year by the end of the 2024 financial year. The planned tie-in of the Port Debottlenecking Project continues to progress and remains on track to be completed in the 2024 calendar year.

Iron-ore production outlook in Western Australia has been maintained at between 250-million to 260-million tonnes for the 2024 financial year, while Samarco production is targeted at between 4-million and 4.5-million tonnes.

Meanwhile, metallurgical coal production in the September quarter fell by 16% on the June quarter, to 5.6-million tonnes, with the lower production owing to planned wash plant maintenance at Goonyella, mining in higher strip ratio areas, an extended longwall move at Broadmeadow, and a stoppage at Peak Downs.

This was partially offset by strong underlying truck productivity and favourable weather conditions. BMA also opened the period with low inventory levels compared with an inventory drawdown in the prior year owing to wet weather.

BHP has maintained its guidance of between 28-million and 31-million tonnes for the 2024 financial year.

Energy coal production in the September quarter was up by 38% on the previous quarter, to 3.6-million tonnes, owing to favourable weather conditions and eased labour constraints, which enabled record annualised truck hours for the quarter. This was partially offset by planned wash plant maintenance completed in August.

Energy coal production guidance for the 2024 financial year remains unchanged at between 13-million and 15-million tonnes.

Meanwhile, nickel production in the quarter under review fell by 2%, to 20 200 t, in line with higher stripping activity at the Mt Keith mining operations.

BHP has maintained nickel guidance at between 77 000 t and 87 000 t for the full year.

The miner told shareholders that the refinery shutdown planned for October 2023 will now largely be completed in February 2024, and as a result production is expected to be relatively flat across the remainder of the year.

“Jansen Stage 1 in Canada is approximately one-third complete after a productive summer. In South Australia, we saw strong operational performance in the first full quarter of production for the new province, as we bring our copper assets together and progress further exploration drilling,” said Henry.