(Alliance News) - BHP Group PLC on Wednesday reported a mixed performance in output for its recently ended financial year, with a drop in petroleum and copper, but growth in iron ore production.
For the year ended June 30, copper production dropped by 4.7% to 1.64 million tonnes from 1.72 million tonnes, due to the Anglo-Australian miner's Chilean assets having to operate with a reduced workforce due to preventative measures linked to Covid-19.
In particular, output from Escondida and Pampa Norte had declined due to lower concentrate and stacking feed grades, as well as planned maintenance. For the year ending June 2022, BHP is guiding for copper production of between 1.59 million to 1.76 million tonnes.
Total petroleum production also fell 5.5% year-on-year to 102.8 million barrels, with crude oil, condensate & natural gas liquids suffering from natural field decline across BHP's portfolio, while natural gas dropped due to planned shutdowns at Angostura in Trinidad & Tobago.
Petroleum for the current financial year is expected to decline in the range of 99 million barrels to 106 million barrels, as increased production from Shenzi infill wells is set to be more than offset by natural field decline.
Iron ore production for the year grew 2.1% to 253.5 million tonnes from 248.2 million tonnes the prior year, driven by record production from the Jimblebar mine in Australia, as well as a stronger operational performance across BHP's supply chain.
For the 2022 financial year, BHP expects iron ore production to be between 249 million tonnes and 259 million tonnes.
Metallurgical coal production dipped 1.2% to 40.6 million tonnes and energy coal output by 17% to 19.3 million tonnes.
BHP has guided by metallurgical coal production for the current financial year to be between 39 million tonnes and 44 million tonnes, on expectations of coal import restrictions into China to remain for several years, as well as planned wash plant maintenance in the first half.
Energy coal output meanwhile, is guided to decrease even further to between 13 million tonnes and 15 million tonnes, reflecting the planned divestment of BHP's 33% interest in the Cerrejon mine in Colombia to Glencore PLC.
"We set several production records and brought on four major projects safely, on schedule and on budget. This strong performance is a reflection of the capability and commitment of our employees and contractors, the strength of our systems and the support of our business partners," said Chief Executive Officer Mike Henry.
"BHP is in great shape. Our operations are performing well, we continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth," he added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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