BHP Chief Executive Officer Mr Mike Henry said “BHP delivered safe and reliable production in the third quarter. Our WA iron ore business continues to perform strongly as we navigate the state’s first major COVID-19 wave, and we remain on track to achieve full year volume and cost guidance. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance and benefited from better weather in the quarter. In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance. These gains have been more than offset at Escondida by impacts from COVID-19 and public road blockades in Antofagasta, which are reflected in a revision to overall production guidance.”Iron ore - 59.7 million tonne. Lower volumes at WAIO reflecting temporary labour constraints due to COVID-19, train driver shortages and planned maintenance activities. This was partially offset by record production from the MAC hub with the continued ramp up of South Flank. Metallurgical coal – 10.6 million tonne. Increased volumes as a result of lower rainfall than the prior period coupled with 20% strong operational performance driven by improved truck productivity. Energy coal -2.6 million tonne. Lower volumes due to continued wet weather and COVID-19 related absenteeism (13%) impacting stripping and mine productivity, as well as an increased proportion of higher quality products.Copper - 369.7 kilo tonne. Higher volumes at Olympic Dam following completion of the planned smelter 1% maintenance campaign. This was partially offset by lower volumes at Escondida mainly due to COVID-19 workforce impacts and public road blockades as a result of social unrestNickel - 18.7 kilo tonne. Lower volumes reflecting temporary labour constraints due to COVID-19 related (13%) absenteeism and workforce shortages. Production guidance for the 2022 financial year remains unchanged for iron ore, metallurgical coal and energy coal. Full year total copper production guidance has been lowered to between 1,570 and 1,620 kt, reflecting lowered production guidance for Escondida. Full year nickel production guidance has been lowered to between 80 and 85 kt due to COVID-19 related labour constraints.Full year unit cost guidance for Western Australia Iron Ore (WAIO), Escondida and Queensland Coal remains unchanged. Full year unit cost guidance for New South Wales Energy Coal (NSWEC) has been increased to between US$76 and US$81 per tonne, reflecting a targeted increase in the proportion of higher quality coal to capture more value from the record high prices for higher quality thermal coal.
BHP Chief Executive Officer Mr Mike Henry said “BHP delivered safe and reliable production in the third quarter. Our WA iron ore business continues to perform strongly as we navigate the state’s first major COVID-19 wave, and we remain on track to achieve full year volume and cost guidance. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance and benefited from better weather in the quarter. In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance. These gains have been more than offset at Escondida by impacts from COVID-19 and public road blockades in Antofagasta, which are reflected in a revision to overall production guidance.”Iron ore - 59.7 million tonne. Lower volumes at WAIO reflecting temporary labour constraints due to COVID-19, train driver shortages and planned maintenance activities. This was partially offset by record production from the MAC hub with the continued ramp up of South Flank. Metallurgical coal – 10.6 million tonne. Increased volumes as a result of lower rainfall than the prior period coupled with 20% strong operational performance driven by improved truck productivity. Energy coal -2.6 million tonne. Lower volumes due to continued wet weather and COVID-19 related absenteeism (13%) impacting stripping and mine productivity, as well as an increased proportion of higher quality products.Copper - 369.7 kilo tonne. Higher volumes at Olympic Dam following completion of the planned smelter 1% maintenance campaign. This was partially offset by lower volumes at Escondida mainly due to COVID-19 workforce impacts and public road blockades as a result of social unrestNickel - 18.7 kilo tonne. Lower volumes reflecting temporary labour constraints due to COVID-19 related (13%) absenteeism and workforce shortages. Production guidance for the 2022 financial year remains unchanged for iron ore, metallurgical coal and energy coal. Full year total copper production guidance has been lowered to between 1,570 and 1,620 kt, reflecting lowered production guidance for Escondida. Full year nickel production guidance has been lowered to between 80 and 85 kt due to COVID-19 related labour constraints.Full year unit cost guidance for Western Australia Iron Ore (WAIO), Escondida and Queensland Coal remains unchanged. Full year unit cost guidance for New South Wales Energy Coal (NSWEC) has been increased to between US$76 and US$81 per tonne, reflecting a targeted increase in the proportion of higher quality coal to capture more value from the record high prices for higher quality thermal coal.
