BHP (BHP.AX,BLT.L,BBL,BHP) reported that its second-quarter total iron ore production increased by 3.2 percent to 62.36 million tonnes from last year’s 60.40 million tonnes. Total iron ore production for the quarter was up 3.5 percent to 70.41 million from the prior year on a 100 per cent basis.
Western Australia Iron Ore or WAIO production for the half year ended 31 December 2020 increased by six per cent to 128 million tonnes or 145 million tonnes on a 100 per cent basis, reflecting record production at Jimblebar and strong performance across the supply chain, with significant improvements in cardumper productivity and reliability. It was partially offset by weather impacts and the planned Mining Area C and South Flank major tie-in activity.
Iron ore production for the third 2021 quarter is expected to be impacted by planned Ore Handling Plant maintenance across the mines and continued Mining Area C and South Flank tie-in activity.
The company raised its fiscal 2021 total iron ore production outlook to a range of 245 million tonnes – 255 million tonnes from its prior range of 244 million tonnes – 253 million tonnes, reflecting the restart of Samarco in December 2020.
Total petroleum production for the half-year period decreased by 12 percent to 50 MMboe. Guidance for the 2021 financial year remains unchanged at between 95 and 102 MMboe. Volumes are expected to be in the upper half of the guidance range as additional production from Shenzi, following the acquisition of a further 28 per cent working interest, is partially offset by the impacts of significant hurricane activity in the Gulf of Mexico.
Total copper production for the half-year period decreased by five per cent to 841 thousand tonnes. Annual copper guidance has been narrowed to between 1.510 million tonnes and 1.645 million tonnes and reflects strong performance at Escondida.
Metallurgical coal production decreased by five per cent to 19 million tonnes or 34 million tonnes on a 100 per cent basis. Guidance for the 2021 financial year remains unchanged at between 40 million tonnes and 44 million tonnes or 71 million tonnes and 77 million tonnes on a 100 per cent basis, with a stronger second half performance projected in line with its plans.
Energy coal production decreased by 30 percent to 8 million tonnes. Following a strike at Cerrejón, Energy coal production guidance for the 2021 financial year has been reduced to between 21 million tonnes and 23 million tonnes from between 22 million tonnes and 24 million tonnes.
Nickel West production increased by 31 percent to 46 thousand tonnes reflecting strong performance from the new mines and improved operational stability following major quadrennial maintenance shutdowns in the prior period. Guidance for the 2021 financial year remains unchanged at between 85 thousand tonnes and 95 thousand tonnes.
BHP expects to recognize an impairment charge of between US$1.15 billion and US$1.25 billion post tax in relation to NSWEC and associated deferred tax assets.
For comments and feedback contact: firstname.lastname@example.org