BHP Group, world’s leading iron ore miner, announced its Q1CY22 (January-March 2022) results recently. Production for the quarter from its Western Australia mines was recorded at 66.7 million tonnes (mnt), a decrease of 10% q-o-q as against 73.9 mnt in Q4CY21. The above-mentioned figures relate to production from all its mines.
Temporary labour constraints during Covid-19, train driver shortages, planned track renewal works, and the planned major maintenance on car dumper impacted Q1 production.
On a yearly basis, BHP’s output remained stable compared to Q1CY21.
Production in the April-June 2022 quarter, however, is expected to be impacted by continued Covid-19 related absenteeism as Western Australia approaches anticipated peak case numbers, and planned car dumper maintenance.
Iron ore sales down in Q1CY22
The company’s total iron ore sales from Pilbara on 100% basis were recorded at 67.1 mnt in Q1CY22, down by 8% as compared to 73.2 mnt in Q4CY21. On a yearly basis, sales inched up by 2% as against 66 mnt in Q1CY21.
Key updates-
- Production guidance for FY22 unchanged: BHP Group’s FY22 (July 2021-June 2022) iron ore production guidance from Western Australia (100% basis) remains unchanged at around 278-288 mnt.
- South Flank project to be ramped up to full capacity in 3 years: South Flank mine’s production capacity is planned to be ramped up to 80 mnt pa (100% basis) over three years. An average rate of 58 mnt pa has already been achieved in the January-March quarter, contributing to record production from the MAC hub and record lump sales.
- Samarco pellet production guidance unchanged: Samarco’s pellet production so far has reached 3.1 mnt (BHP share) since the re-commencement of iron ore pellet production at one concentrator in Dec’20 after meeting the licensing requirements to restart operations. Production guidance for the 2022 financial year remains unchanged at around 3-4 mnt (BHP share).
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