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Be the first with the news that moves the market- Mining giant BHP (BHP) has spruiked record iron ore production at its West Australian tenements in today’s quarterly update
- The ASX200-lister’s year-to-date production figures were up by four per cent to clock in at 188.3 million tonnes of iron ore per annum amid decade-high iron ore prices
- As a result, BHP estimates production volumes will come in at the upper half of its FY21 guidance range
- Looking forward, the mining player expects to continue securing relationships within Asia and pursuing lower carbon emissions, laying plans to work with its major Chinese and Japanese stakeholders to meet its Paris Agreement goals
- BHP shares closed the day down 0.51 per cent
Mining giant BHP (BHP) has spruiked record iron ore production at its West Australian tenements in today’s quarterly update.
Production figures
The ASX200-lister’s year-to-date production figures were up by four per cent to clock in at 188.3 million tonnes of iron ore per annum. However, these figures are down four per cent on the previous quarter.
The encouraging numbers come in the wake of an iron ore price at heights not seen for nearly a decade.
Citing strong performance across its Pilbara projects, BHP maintained its guidance for the 2021 financial year and expects production volumes to weigh in towards the upper half of the guidance range.
Copper guidance has been increased to the 1.5-million-tonnes-to-1.6-million-tonnes range, as the miner reported stronger than expected performance at its Escondida copper mine in Chile and achieved record average concentrator throughput.
Overall, copper production was down by six per cent to 1.2 million tonnes.
The news comes as the company faces COVID-induced hindrances in its Chilean workforce, which it anticipates will worsen over the June quarter.
Metallurgical and energy coal production and their respective guidances did not favour as well and were subsequently lowered due to significant wet weather events.
“We are reliably executing our major projects, bringing on new supply in copper, petroleum and iron ore,” BHP’s Chief Executive Officer Mike Henry commented.
Corporate activities
Looking forward, the mining player expects to continue securing relationships within Asia and pursuing lower carbon emissions. Toward this end, the company recently signed a memorandum of understanding (MOU) with Japanese steel producer JFE to invest US$15 million (roughly A$19.44 million) into studying pathways to material reductions to its greenhouse gas emissions.
BHP also signed an MOU with China’s HBIS Group — one of the world’s largest steelmakers and one of the company’s biggest iron ore customers — to invest US$15 million (roughly A$19.44 million) to look into less environmentally taxing production methods.
Speaking on this matter, BHP’s CEO said the company continues to deliver on decarbonising, in line with the Paris Agreement goals.
BHP shares closed the day down 0.51 per cent.
