World’s leading iron ore miner – BHP Group has today announced its H2 CY’20 results. The production for H2 CY’20 from Western Australia iron ore operations was recorded at 144.6 mn t. The output picked up by 5% against H2 CY’19 at 137.3 mn t. Fig mentioned is on 100% basis. The record production at Jimblebar and strong performance across the supply chain, with significant improvements in car dumper productivity and reliability, was offset by the planned Mining Area C and South Flank major tie-in activity, weather impacts and a temporary power disruption at Yarnima.
Output fell to 70.4 mn t in Q4 CY’20 as compared to 74 mn t in Q3 CY’20.
FY21(July 20- June’21) production guidance
BHP Group FY’21 iron ore production guidance from Western Australia (100% basis) remains intact at 276-286 mn t for the fiscal year. The target includes production from Samarco plant.
BHP Group’s iron ore sales up 5% in H2 CY’20
BHP Group’s total iron ore sales from Pilbara on 100% basis witnessed at 144.1 mn t for H2 CY’20 was up against 137.7 mn t in H2 CY’19. On a quarterly basis, sales dropped to 70.8 mn t compared to 73.4 mn t in Q3 CY’20.
BHP Group: Key Updates
- The South Flank project is expected to replace production from 80 MnT p.a. Yandi mines. The project is on schedule and budget. The project is 90% complete and is expected to be initiated by mid- CY’21.
- Samarco re-commenced iron ore pellet production in Dec’20 after meeting the licensing requirements to restart operations at the Germano complex in Minas Gerais and Ubu complex in Espirito Santo, Brazil. Samarco’s operations were suspended following the failure of the Fundao dam on 5 November 2015. Production for FY’21 is expected to be between 1-2 mn t. Production capacity of around 8 mn t p.a (100% basis) is expected once ramped up.
- Iron ore production in the Q1 CY’21 quarter is expected to be impacted by planned Ore Handling Plant maintenance across the mines and continued Mining Area C and South Flank tie-in activity.
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