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BHP Group’s iron ore output climbed 6 per cent in the three months to the end of June, taking the global mining giant to a record 260 million tonnes for its full year, in line with guidance.
Over the quarter, BHP produced 69.2 million tonnes of the steelmaking ingredient, mostly from its Western Australia Iron Ore, or Waio, operations in the Pilbara region. The miner attributed the increase to streamlining at ports as well as the ramp-up of its South Flank mine to full production capacity.
“Waio continued its strong performance, delivering a second consecutive year of record production on the back of ongoing incremental improvements along its supply chain as we progress towards our medium-term goal of increasing production to greater than 305 million tonnes per annum,” BHP chief executive officer Mike Henry said.
Demand for Australian iron ore – the nation’s biggest and most valuable export – has so far weathered the property crisis in China, thanks to Beijing’s efforts to shore up the sector and steel exports. Still, iron ore prices have fallen by about a fifth this year.
New supply from Rio Tinto’s giant Simandou project in Guinea from next year is also expected to weigh on prices.
BHP’s full-year copper production rose 9 per cent to 1.9 million tonnes, again in line with previous guidance, thanks to a boost from the Escondida mine and South Australian operations.
BHP bought smaller rival OZ Minerals last year with an eye on the Carrapateena and Prominent Hill operations, in Australia’s copper belt. The miner aims to double output from its South Australian copper assets.
Appetite for the red metal pushed BHP to make a takeover approach for Anglo American earlier this year. The target rejected repeated offers in favour of its homegrown turnaround plan, and BHP walked away in late May. BLOOMBERG
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