BHP Group announced its Q3CY2022 (July-September 2022) results recently. Iron ore production for the quarter from its Western Australia mines was recorded at 72.1 million tonnes (mnt) on 100% basis, up 1% q-o-q as against 71.7 mnt in Q2. The above-mentioned figures relate to production from all its mines.
The marginal increase in output was due to strong supply chain and lower Covid-19-related impacts than the prior period, partially offset by wet weather impacts.
On a yearly basis, BHP’s output inched up by 2% compared to 70.59 mnt in Q3CY2021.
Iron ore sales up in Q3
The company’s total iron ore sales from Pilbara on 100% basis were recorded at 70.3 mnt in Q3, down by 3% as compared to 72.8 mnt in Q2. On a yearly basis, sales remained largely stable as against 70.8 mnt in Q3CY2021.
Other highlights
- Production guidance for FY23 (Jul’22- Jun’23) unchanged: BHP’s FY2023 iron ore production guidance from Western Australia remains unchanged at around 249-260 mnt.
- South Flank to reach full capacity in 3 years: The South Flank ramp-up to full production capacity of 80 mntpa (on a 100% basis) is proceeding as planned. Natural fluctuation in ore grade is to be expected as the mine moves through the near-surface material, but this is expected to stabilise.
- Samarco pellet production guidance unchanged: Samarco’s pellet production so far has reached 1.1 mnt (BHP’s share) since the re-commencement of iron ore pellet production at one concentrator in December 2020 after meeting the licensing requirements to restart operations. Production guidance for the 2023 financial year remains unchanged at around 3-4 mnt (BHP’s share).
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