Mining giant BHP's iron ore production edged lower year on year in the July-September quarter and metallurgical coal production remained flat, leading the miner to keep its 2016-2017 (July-June) fiscal guidance unchanged for both, the company said Wednesday in its quarterly production report.
In the quarter ending September, BHP's Western Australian Iron Ore business produced 55.59 million wet mt, down 3% year on year and 8% from the April-June quarter. On a 100% basis, its mines produced around 64 million wmt.
"Guidance for the 2018 financial year remains unchanged at between 239 [million wmt] and 243 [million wmt], or between 275 [million wmt] and 280 [million wmt] on a 100 per cent basis, with volumes weighted to the last three quarters of the year," the company said. It also added that it expects weaker WAIO production.
"Record production at Jimblebar was more than offset by the impact of lower opening stockpile levels, following the fire at the Mt Whaleback screening plant in June 2017, and planned maintenance in the September 2017 quarter," it said in the report.
The Jimblebar mine produced a total of 6.28 million wmt during the quarter, up from 6.06 million wmt a year earlier and from 5.89 million wmt in the June quarter. The mine productivity improved due to increased plant availability and consistent feed rates. BHP's share in the mine is 85%.
Stockpile levels have been rebuilt and are expected to be partially drawn down in the next quarter, the company added.
The company continues to work with authorities to gain approvals to increase its port capacity to 290 million mt/year on a 100% basis.
BHP's WAIO operation is an integrated system of four processing hubs and five mines, connected by more than 1,000 kilometres of rail infrastructure and port facilities in the Pilbara region of western Australia. The hubs include Newman, Yandi, Mining Area C and Jimblebar.
Mining and processing operations at the Brazilian Samarco mine, however, remain suspended following the failure of the Fundao tailings dam and Santarem water dam in November 2015.
METALLURGICAL COAL PRODUCTION RECOVERS AFTER CYCLONE
BHP's metallurgical coal production stood at 10.57 million mt in the September quarter, flat year on year but up 24% from the June quarter, which was impacted by Tropical Cyclone Debbie, the miner said.
"At Queensland Coal, mining operations have recovered following the impacts of Cyclone Debbie, with record production at Saraji and increased production at Peak Downs and Caval Ridge, underpinned by an improvement in trucking hours and utilisation of latent wash-plant capacity," BHP said.
The Saraji mine produced 1.41 million mt during the three month period, up from 1.24 million mt a year earlier, and from 913,000 mt in the cyclone-impacted April-June period.
Peak Downs produced 1.60 million mt, up from 1.52 million mt a year go and from 1.24 million mt a quarter ago, while Caval Ridge production totaled 994,000 mt in the quarter, up from 876,000 mt a year ago and from 760,000 mt a quarter ago.
"The Caval Ridge Southern Circuit project is progressing according to plan, with production expected to ramp-up early in the 2019 financial year," the company said.
The upgrade will result in the Caval Ridge preparation plant increasing its throughput to reach its 10 million mt/year capacity, BHP had said earlier.
BHP's Queensland Coal comprises the BHP Mitsubishi Alliance and BHP Mitsui Coal assets in the Bowen Basin in Central Queensland. BMA is 50:50 owned by BHP and Mitsubishi Development, and operates the Goonyella Riverside, Broadmeadow, Daunia, Peak Downs, Saraji, Blackwater and Caval Ridge mines.
It also owns and operates the Hay Point Coal Terminal. BMC owns and operates the South Walker Creek and Poitrel mines in the Bowen Basin. It is 80% owned by BHP.
