BHP posts second straight year of record iron ore production, beats estimates

BHP has eked out consistent gains from a project to debottleneck its Western Australian iron ore operations, while also benefiting from higher throughput at its Escondida mine in Chile.

The upbeat performance comes after BHP said last week it was suspending its Western Australia nickel operations from October, citing plunge in the metal’s prices and an oversupply in the global market.

For the full year ended June 30, BHP produced 287.0 million metric tons (Mt) of iron ore. It expects to produce between 282 Mt and 294 Mt for fiscal 2025, as it progresses towards its medium-term target beyond 305 Mt.

BHP’s South Flank operations have now ramped up to full operational capacity of 80 Mt during the quarter.

Iron ore output from Western Australia on a 100% basis was 76.8 Mt in the three months to June 30, beating a Visible Alpha consensus estimate of 75.4 Mt as compiled by Macquarie.

The global miner had recorded Western Australia iron ore output of 72.7 Mt last year.

Copper production during the quarter increased 6%, compared with the prior year to 504.9 kilo tons (kt), helped by higher concentrator grade and throughput at Escondida, BHP said. That beat a Vuma consensus of 469.2 kt.

In late May, BHP walked away from a $49 billion takeover offer for rival Anglo American, a plan which was at the time aimed at securing Anglo’s prized copper assets in Latin America and increase BHP’s access to copper.

Energy coal output fell partly due to unfavourable weather and maintenance works brought forward while metallurgical coal production fell 18% during the quarter following the divestment of its Blackwater and Daunia mines in Queensland to Whitehaven Coal.

BHP will report its full-year results on Aug. 27.

(By Echha Jain, John Biju and Melanie Burton; Editing by Maju Samuel and Rashmi Aich)