BHP has released its operational evaluation for the fiscal year ended 30 June 2023, reporting that full-year production guidance for copper, iron ore, metallurgical coal, and energy coal was fulfilled.
Meanwhile, nickel met updated guidance and finished at the lower end of the original guidance.
Western Australia Iron Ore (WAIO) set annual production records of 285 Mt (100% basis), Spence of 240 kt, and Olympic Dam for both copper of 212 kt and refined gold of 186 troy koz.
Unit cost guidance for the full year is projected to be met at Escondida, WAIO, and New South Wales Energy Coal (NSWEC). BHP Mitsubishi Alliance (BMA) is likely to do slightly better than its amended guidance range.
In the fiscal year 2023, the average realised copper, iron ore, and metallurgical coal prices were lower than in the previous year. Nickel prices were steady, but thermal coal prices increased, primarily in the first part of the year.
BHP has made significant progress at Oak Dam in South Australia. The company has established an Exploration Target and intends to expand the number of exploration drills from nine to eleven by the end of the fiscal year 2023.
“BHP finished the year with a strong fourth quarter, increasing annual production across the board and achieving annual records at WAIO, Olympic Dam and Spence. WAIO shipped record volumes on the back of productivity in its supply chain, rail network and car dumpers, while South Flank completed its deployment of autonomous haul trucks in May and is on track to ramp up to full production in the next 12 months. Olympic Dam’s improved reliability and productivity delivered record annual output in copper, gold and silver, and the integration of OZ Minerals into our South Australian copper business is expected to lift production to between 310 and 340 kt in FY24. At Escondida, the team managed through operational challenges to deliver solid production and position the asset to increase output further in FY24. Our Queensland coal operations achieved strong underlying performance including the transition to autonomous fleets at Goonyella Riverside and Daunia, offsetting the impact of significant wet weather,” BHP CEO Mike Henry said.
“BHP’s portfolio is geared towards high quality steelmaking and growth options in future facing commodities. The Jansen potash project in Canada remains ahead of plan and studies for Stage 2 are progressing. Through the year, BHP made strategic investments and exploration progress in copper and nickel prospects globally, including Kabanga in Tanzania, Oak Dam in Australia, Filo Mining with the Filo del Sol project in Argentina and Chile, and Ocelot in the United States, as well as Serbia and Peru,” Henry stated.
Meanwhile, BHP completed the OZ Minerals acquisition on 2 May 2023.
The Company also issued its sixth Reconciliation Action Plan in Australia, which received Elevate status.
Additionally, BHP reported two fatalities during the financial year.
“The financial year was marked by the deaths of Jody Byrne and Nathan Scholz. These tragic events underscore the absolute importance of safety and we are resolute in our commitment to eliminating fatalities and serious injuries at BHP,” Henry added.
