BHP Billiton – the third largest iron ore producer has recently announced its quarterly results. It has reduced its production guidance to 272-274 MnT on a 100% basis against previous forecast of 275-280 MnT due to car dumper reliability issues.
The miner reported an increase in Y-o-Y productions in the quarter ended Mar’18.The total iron ore production on 100% basis from Pilbara, Australia for Q1 CY’18 witnessed at 67 MnT, up 8% Y-o-Y as against Q1 CY’17 at 62.2 MnT. The Q-o-Q change recorded a decline of 6% in Q1 production, as against 71.6 MnT in Q4 CY’17. This decline is attributed to Cyclone in Jan’18 and unplanned car dumper maintenance.
The total production for first nine months FY’18 (Jul’17-Mar’18) recorded at 202.9 MnT, due to improved rail reliability almost stable against same period last year at 198.6 MnT.
BHP Billiton’s total iron ore sales on 100% basis recorded at 67.8 MnT for Q1 CY’18. The fourth quarter sales recorded decrease of 4% Q-o-Q as against 70.7 MnT in Q4 CY’17. The sales for Q1 CY’18 witnessed an increase of 8% Y-o-Y as against Q1 CY’17 which stood at 62.5 MnT. The sales for FY’18 first nine months (July- Mar’18) recorded at 201.9 MnT compared to 197.1 MnT in the same time frame last year.
Key updates:
1. BHP received approval for increase in Port hedland capacity to 290 MnT iron ore p.a, which is expected to be achieved by end of FY’19
2. Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015
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