Diversified Anglo-Australian mining company and global iron ore major’ BHP Billiton, has recently announced the company’s Nov’21 product sales discounts, as per latest reports.
The leading iron ore miner has announced an 8% discount for its Mining Area C (MAC) iron ore fines, 17% discount for Jimblebar fans, and 20.5% for Yandi fines. The discounts for the three main products offered by the miner from its mines in Western Australia have narrowed compared to discounts offered in Oct.
In Oct, the discounts were 17.5% for MAC fans, 24% for Jimblebar fines, and up to 30% for Yandi fines, as per reports.
Supply issues
The BHP Group’s disclosure of product sales discounts for the next month is its guidance on the sales price, and is regarded as a price indicator for the main iron ore products offered by the miner.
The reduction in discounts was made in the first quarter of this fiscal (Jul-Sep’21) in the context of a nearly 5% decline in iron ore production. The reasons behind the decline in production was the maintenance work at one of its mine and covid-19 border restrictions that triggered a shortage of labour for operating the railway lines connecting BHP’s iron ore mines to strategic Australian ports.
BHP Group, announced its Q3CY’21 results recently. Production for the quarter from its Western Australia iron ore operations was recorded at 70.6 million tonnes (mn t), dropping by 5% y-o-y against 74 mn t in Q3CY’20.The figures mentioned relate to production from all its mines. Planned major maintenance during the quarter and temporary railway labour shortage due to Covid-19 affected production. The BHP Group’s FY’22 iron ore production guidance from Western Australia (100% basis) remains unchanged at 278-288 mn t for the fiscal year.
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