BHP has cut its iron ore production forecasts

Iron ore. Picture: Getty Images

BHP has reduced its iron ore production forecasts due to unplanned maintenance and disruption from a cyclone in Australia’s north west.

Full year iron ore production guidance has been cut to between 272 and 274 Mt, compared to the previous forecast of 239 to 243 Mt.

Total iron ore production for the nine months to March increased by 2% to a record 175 Mt.

However, record production at Jimblebar and Mining Area C was partially offset by the impact from Cyclone Joyce in January and unplanned car dumper maintenance.

Full year production guidance is unchanged for Petroleum, Metallurgical Coal and Energy Coal.

“BHP remains on track to achieve 6% volume growth for the 2018 financial year,” says BHP Chief Executive Officer Andrew Mackenzie.

“Strong performance in copper was underpinned by the Los Colorados Extension project at Escondida and higher utilisation rates at Pampa Norte.

“This more than offset the slower than expected ramp-up of Olympic Dam during the quarter following planned smelter maintenance.”

He also says BHP’s exit from onshore US is progressing to plan with bids expected by June and
transactions potentially being announced in the first half of the 2019 financial year.

All major projects under development are tracking to plan.

The March production numbers in detail:

Source: BHP

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