BHP has released its Operational Review for the nine months ended 31 March 2023.
Iron ore, metallurgical coal, and energy coal production guidance for the fiscal year 2023 remain unchanged. Olympic Dam and Pampa Norte are predicted to be around the top of their guidance ranges, while BHP Mitsubishi Alliance (BMA) is expected to be near the bottom of its range.
Escondida‘s production guidance has been reduced to between 1,050 and 1,080 kt (from between 1,080 and 1,180 kt). According to BHP, given the robust performance of the other copper properties, total copper production guidance for the full year remains unchanged at 1,635 to 1,825 kt. Full-year nickel production has been reduced from 80 to 90 kt to 75 to 85 kt.
Western Australia Iron Ore (WAIO) set a nine-month production record of 212.6 Mt (100% base). Fortunately, Tropical Cyclone Ilsa caused no serious damage or reported injuries at the WAIO facilities. BHP’s operations in Port Hedland were halted in collaboration with the Pilbara Ports Authority.
“Our WA iron ore business achieved record production, and total copper output for the Group was up for the nine months, while metallurgical coal volumes were down slightly due to significant wet weather. Overall copper production for the year remains on track, however we’ve reduced production guidance at Escondida and also at Nickel West. We continue to focus on safety, productivity and costs as we navigate ongoing challenges and inflationary impacts,” BHP Chief Executive Mike Henry said.
The full-year unit cost forecast is unchanged from the half-year period ending 31 December 2022. WAIO and Escondida are predicted to be at the top of their respective ranges.
On 13 April 2023, OZ Minerals Ltd (OZL) shareholders voted to accept BHP’s scheme of arrangement to acquire 100% of OZL’s shares. The Scheme went into force on 18 April 2023 and is scheduled to go into action on 2 May 2023.
“Last week, OZ Minerals shareholders voted overwhelmingly in favour of BHP’s offer. We are now focused on the safe integration of the two businesses and we look forward to building an internationally competitive copper business in South Australia and incorporating West Musgrave into our nickel options in Western Australia. We are pursuing growth options in copper and nickel globally – we aim to have up to 10 drill rigs on the ground at Oak Dam in South Australia in the next few months and have seen promising results from a potential new copper prospect in Arizona. In Canada, we signed $260 million (CAD) in new contracts with Indigenous suppliers in March, and construction of the Jansen potash project is on track,” Henry said.
The South Australian Government has awarded environmental grounds for the next phase of exploration drilling at Oak Dam.
BHP has also discovered a new copper porphyry mineralised system, Ocelot, in Arizona’s Miami-Globe copper area.
BHP also reported the death of one of its employees, Jody Byrne, who was fatally injured in the company’s Port Hedland operations in February.
“Safety is paramount, and we are deeply saddened by the tragic death of Jody Byrne in an incident at Port Hedland in February. An investigation into the cause of the incident is underway, the findings of which will be shared widely,” Henry added.
