BHP 1Q Output Down on Maintenance Work -- Update
October 16 2019 - 06:21PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Group Ltd. (BHP.AU) said production of commodities
including iron ore, coal and petroleum was weaker during its first
fiscal quarter, mainly because of planned maintenance work.
BHP, the world's biggest mining company by market value, said
Thursday it produced 61 million metric tons of iron ore during the
three months through September, down 1% on the same period a year
ago. Volumes were lower because of maintenance activities at the
Port Hedland port facility on Australia's northwest coast aimed at
improving reliability, it said.
BHP is the world's third-biggest exporter of iron ore, which it
produces from a vast network of mines in Australia's remote Pilbara
mining region.
At 29 million barrels of oil equivalent, the company produced
11% less petroleum in its first quarter than the year-earlier
period. That was in big part due to planned maintenance at the
North West Shelf operations and Tropical Storm Barry in the Gulf of
Mexico, BHP said.
Still, BHP reiterated its earlier annual production projections,
including iron-ore production of 242-253 million tons and petroleum
output of 110-116 million barrels.
"While group production for the quarter decreased slightly due
to the expected impacts of planned maintenance and natural field
decline in petroleum, guidance remains unchanged and we are on
track to deliver slightly higher volumes than last financial year,"
Chief Executive Andrew Mackenzie said.
All major projects are also on schedule and on budget, he
said.
BHP said it expects the first stage of its Jansen potash project
in North America to be presented to the board for final investment
decision by February 2021.
Among other commodities, the company reported a 5% lift in
quarterly copper production as record throughput at Escondida's
processing facilities offset planned maintenance at its Olympic Dam
mine. It said output of metallurgical coal and energy coal fell by
10% and 15%, respectively, also due to plant maintenance and, for
energy coal, a change in strategy to focus on higher quality
products.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
October 16, 2019 18:06 ET (22:06 GMT)
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