The world’s leading iron ore miner, the BHP Group, announced its Q3CY’21 results today. 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.
Output was down by 3% q-o-q as compared to 72.9 mn t in Q2CY’21.
Production guidance for FY’22 (Jul’21-Jun’22): 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. The Western Australia Iron ore (WAIO) operations continue to focus on incremental volumes growth through productivity improvements.
Iron ore sales down in Q3: The BHP Group’s total iron ore sales from Pilbara on 100% basis were recorded at 70.8 mn t in Q3CY’21, down against 73.4 mn t in Q3CY’20. On a quarterly basis, sales decreased by 4% as compared to 73.7 mn t in Q2CY’21.
Key updates
- The South Flank project is expected to be ramped up to its full production capacity of 80 mntpa. (on 100% basis) over three years. Once fully ramped up, the high-quality ore will increase WAIO’s average iron ore grade from 61-62% and the overall lump proportion from 25% to 30-33%.
- On 7 Sept’21, BHP received regulatory approval to increase capacity at Port Hedland to 330 mntpa (100% basis), subject to the outcome of the standard appeals processes. The near-term focus remains on sustainable achievement of 290 mntpa.
- Samarco pellet production was at 1 mn t, after the re-commencement of iron ore pellet production at one concentrator in Dec’20. Production for the 2022 financial year is expected to be at 3-4 mntpa (BHP share). Production capacity of approximately 8 mntpa (100 % basis) is expected to be reached in the second half of FY’22.
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