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BHP Group, the world’s biggest miner by market value, on Wednesday reported an increase in first-quarter copper and energy coal output year-on-year, and lower iron ore, steelmaking coal and nickel production. Here are some remarks from the company’s quarterly operations report.
On BHP Mitsubishi Alliance, or BMA, joint venture:
“Lower production was due 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 favorable weather conditions. BMA also opened the period with low inventory levels compared with an inventory drawdown in the prior year due to wet weather.
Guidance for FY24 remains unchanged at between 28 and 31 million [metric] tons (56 and 62 million tons on a 100% basis). Planned wash plant maintenance at Peak Downs and Caval Ridge and the ramp up of Broadmeadow from the longwall move will continue into Q2. Once completed, we expect underlying operating performance to deliver increased production in the second half.”
On Escondida copper mine:
“Increased production was primarily due to higher concentrator feed grade of 0.85%, compared to 0.83% in the September 2022 quarter. Concentrator feed grade is expected to be between 0.85% and 0.90% during FY24. Guidance for FY24 remains unchanged at between 1.08 and 1.18 million tons, with production expected to be weighted towards the second half of the year.”
On Copper South Australia business:
“Production increased due to the additional 23,000 tons from Prominent Hill and Carrapateena. Pleasingly, integration of the Olympic Dam, Prominent Hill and Carrapateena assets has gone well, with strong operational performance and continued focus on safe and reliable production, in particular at Olympic Dam (record material mined since FY15) and Carrapateena (record development metres achieved in September).
Planned maintenance was completed across the province. In addition, we upgraded a conveyor at Carrapateena, ahead of the planned commissioning of Crusher 2 in Q3 FY24. Olympic Dam also delivered record gold production (for the second time in three quarters) and gold sales in the quarter.”
On Western Australia Iron Ore operations:
“Production was lower due to tie-in activity for the Rail Technology Programme (RTP1), the ongoing ramp up and maintenance at the Central Pilbara hub (South Flank and Mining Area C), and the timing of track renewal maintenance. South Flank remains on track to ramp up to full production capacity of 80 million tons per annum (100% basis) by the end of FY24.
The planned tie-in of the Port Debottlenecking Project (PDP1) continues to progress and remains on track to be completed in CY24. We are building inventory at the mines while we complete planned maintenance and with South Flank continuing to ramp up, volumes are expected to be weighted to the second half.”
Write to Rhiannon Hoyle at [email protected]
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