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(Alliance News) - BHP Group Ltd on Thursday reported improved interim performance in most of its operations, predicting that China will serve as a "stabilising force" underpinning commodity demand in this year.
The Melbourne-based diversified miner said in an operational update copper production up 12% to 834,400 tonnes for the six months that ended December 31, from 742,000 tonnes a year earlier.
In Chile, copper production at Escondida rose, despite road blockades in the December quarter, and the Spence Growth Option continued to ramp up. Olympic Dam's ongoing smelter performance saw near-record material processing and record gold production in Australia.
The group said iron ore output was up by 2% to 132 million tonnes from 129.4 million tonnes, with Western Australia Iron Ore achieving record production.
Western Australia Iron Ore, it said, was supported by the ongoing ramp-up at South Flank.
BHP said metallurgical coal production in the first half rose by 5% to 14.6 million tonnes, while energy coal output dropped by 24% to 5.5 million tonnes.
"In Queensland, coal production was again impacted by heavy rainfall," the group explained.
Nickel output was down by 2% to 38,400 tonnes.
BHP said it was seeing the impact of inflation across its global supply chains, and continued to focus on productivity and controllable costs.
The diversified miner said it believed China will be a "stabilising force" when it came to commodity demand in the 2023 calendar year, with the Organisation for Economic Co-operation & Development nations experiencing economic headwinds.
"China's pro-growth policies, including in the property sector, and an easing of Covid-19 restrictions are expected to support progressive improvement from the difficult economic conditions of the first half. China is expected to achieve its fifth straight year of over 1 billion tonnes of steel production," the group said.
BHP said shareholders of Oz Minerals Ltd would vote on its offer in the coming months.
In November, the two companies entered into a confidentiality and exclusivity deed after BHP increased its non-binding indicative takeover offer for Oz to AUD28.25 per share in cash.
This represented a premium of 49% to Oz's closing price of AUD18.92 per share on August 5, when BHP tabled its initial offer.
Oz is a gold, copper and nickel miner. It owns and operates the Prominent Hill and Carrapateena mines in South Australia. It also has an interest in the Pedra Branca copper-gold mine in Brazil.
Going forward, BHP said its annual production guidance for the financial year ending June 30 remained unchanged, but noted that Escondida and BHP Mitsubishi Alliance trended to the low end of their respective forecast ranges.
Shares in BHP was down 0.3% at ZAR582.31 in Johannesburg on Thursday, while they closed up 1.2% at AUD49.68 in Sydney on Thursday. In London, the stock ended 0.5% higher at 2,789.74 pence early in London on Wednesday.
By Artwell Dlamini, Alliance News reporter
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