BHP first-quarter iron ore production tops estimates, copper output rises
2024.10.16 18:56
(Reuters) – BHP beat first-quarter iron ore output estimates on Thursday as the mining giant benefited from efforts to ease bottlenecks at its Western Australia operations, while production was lifted by better grades at its Escondida mine.
The company’s South Flank operations ramped up to full operational capacity of 80 million tonnes (Mt) in the previous quarter.
The global miner completed the debottlenecking work at the port at its Western Australia operations, boosting iron ore output.
The world’s largest listed miner said iron ore output from Western Australia on a 100% basis was 71.6 million tonnes (Mt) in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt according to Macquarie.
BHP recorded Western Australia iron ore output of 69.4 Mt in the same quarter of last year.
Iron ore prices have been volatile this year due to demand concerns from top consumer China, which is battling an uneven economic recovery and a struggling property sector.
“Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence,” said CEO Mike Henry.
BHP recorded a 4% rise in copper output for the quarter, reflecting higher grade and recoveries at its Escondida mine in Chile.
The company kept its fiscal 2025 output estimates for Western Australia iron ore unchanged at between 282 Mt and 294 Mt, adding that it was on track to meet its full-year outlook across all commodities.
BHP is seeing signs of stabilisation in its steelmaking coal business while its Jansen Stage 1 potash project in Canada was 58% complete at the end of the quarter, the company said.
The firm’s Western Australia nickel operations, which it recently suspended, saw a drop in quarterly production.
“We expect costs to remain elevated during the transition to suspension in the first half,” BHP said of its nickel operations.
