Last checked at 
(Alliance News) - BHP Group Ltd on Friday reported a mixed production performance in the first nine months of its financial year, but said it expects strong demand for commodities from China and India.
In an operational review, the Melbourne-based miner kept its annual guidance mostly unchanged.
Shares in BHP shed 3.4% to 2,385.00 in London on Friday morning, while they fell by 3.3% to ZAR535.85 in Johannesburg. In Sydney, the stock closed 2.3% lower at AUD45.02 on Friday.
For the nine months that ended March 31, copper production rose by 12% to 1.24 million tonnes from 1.11 million tonnes a year earlier.
Iron ore production increased by just 1% to 191.7 million tonnes for the first nine months from 189.1 million tonnes previously. Western Australia Iron Ore achieved record production for the nine-month period, BHP said.
But metallurgical coal output slipped 2% to 20.5 million tonnes from 28.2 million tonnes.
For the recent nine months, nickel production was flat at 58,000 tonnes.
BHP Chief Executive Officer Mike Henry said: "Recent engagements with customers in China and India have reaffirmed our positive outlook for commodity demand, with China's economic rebound and solid momentum in India's steel-making growth helping to offset the impact of slowing growth in the US, Japan and Europe."
Henry said the company was now focused on the "safe" integration of Oz Minerals Ltd into the group. On Monday, BHP said the Federal Court of Australia had approved the AUD9.6 billion, around USD6.44 billion, deal.
The Oz acquisition is expected to be implemented on May 2.
BHP on Friday said annual production guidance for the financial year ending June 30 remains unchanged for iron ore, metallurgical coal and energy coal.
Strong performance means Olympic Dam in Australia and Pampa Norte in Chile are expected to be toward the upper end of their guidance ranges, while BHP Mitsubishi Alliance is expected to be at the bottom of its range.
Full-year total copper production guidance remains unchanged at between 1.63 million tonnes and 1.82 million tonnes, up from 1.57 million tonnes for the year ended June 30.
Production guidance at Escondida in Chile has been lowered to between 1.05 million tonnes and 1.08 million tonnes, from between 1.08 million and 1.18 million tonnes. In the 2022 financial year, Escondida production was 1.00 million tonnes.
Full-year nickel production has been lowered to between 75,000 tonnes and 85,000 tonnes from between 80,000 tonnes and 90,000 tonnes. Nickel output was 77,000 tonnes in 2022.
Iron ore annual production estimate is the same at between 249 million tonnes and 260 million tonnes, compared to 253 million tonnes in 2022.
Metallurgical coal guidance also is unchanged, at between 29 million tonnes and 32 million tonnes, compared to 29 million tonnes in 2022.
By Artwell Dlamini, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
