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(Alliance News) - BHP Group Ltd said on Wednesday it had maintained its annual production guidance for its 2024 financial year, though production at its diverse operations fell across the board in the first quarter.
In a separate statement, BHP also announced on Wednesday it had agreed to sell the Blackwater and Daunia mines to two wholly owned subsidiaries of Whitehaven Coal for USD4.1 billion in cash.
These mines are part of the BHP Mitsubishi Alliance metallurgical coal joint venture in Queensland. Each of BHP and Mitsubishi Development Pty Ltd hold a 50% interest in the venture.
BHP said the sale is subject to the satisfaction of certain conditions, including competition and regulatory approvals.
In an operational review, BHP on Wednesday reported that copper production declined by 4% to 457,000 tonnes for the first three months to September 30, from 476,200 tonnes in the fourth quarter that ended June 30, citing planned maintenance.
But copper output rose by 11% from 410,100 tonnes in the first quarter last year due to strong underlying operational performance in the first full quarter of production from the newly-integrated Copper South Australia.
Quarter-on-quarter, iron ore production was down 3% to 63.2 million tonnes from 65.3 million, hobbled by planned equipment maintenance and the ongoing ramp-up of the Central Pilbara hub in Australia.
Iron ore production also fell by 3% on an annual basis from 65.1 million tonnes.
On energy, metallurgical coal production slumped by 34% to 5.6 million tonnes in the first quarter, compared to 8.5 million tonnes in the fourth quarter, pointing to the low opening inventory position.
Output in metallurgical coal decreased by 16% year-on-year from 6.7 million tonnes. This was as a result of planned wash plant maintenance at Goonyella mine, mining in higher strip ratio areas, an extended longwall move at Broadmeadow, and a stoppage at Peak Downs. All these mines are located in Australia.
For the first quarter, energy coal production dropped by 24% to 3.6 million tonnes from 4.8 million tonnes in the previous quarter, weighed by lower volumes at NSW Energy Coal in New South Wales.
However, first-quarter energy coal production rose by 38% from 2.6 million in the same quarter last year following favourable weather conditions and eased labour constraints.
Nickel production was 6% lower at 20,000 tonnes in the first quarter from 22,000 tonnes in the fourth quarter. Annually, output was down just 2% from 20,700 tonnes in the first quarter in 2022.
The Melbourne-based diversified mining group said Jansen stage one potash project in Canada is approximately one-third complete after a productive summer.
In 2021, it approved capital expenditure of USD5.7 billion for its Jansen stage 1 potash project.
Looking ahead, BHP guided for an increase in copper production of between 1.7 million tonnes and 1.9 million tonnes for the financial year ending June 30, 2024.
Annual guidance for iron ore ranges from 254.0 million tonnes to 264.5 million tonnes over this period.
Full-year metallurgical coal production is projected to range between 28 million tonnes and 31 million tonnes.
Output for nickel is estimated at between 77,000 tonnes and 87,000 tonnes.
By Artwell Dlamini, Alliance News reporter
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