Australia: BHP Group's iron ore production up 5% in Q4CY'21, guidance unchanged

The world's leading iron ore miner, the BHP Group, announced its Q4CY'21 results today. Production for the quarter from its Western Australia iron ore operations was recorded at 73.9 million tonnes (mnt), a marginal increase of 5% y-o-y as against 70.4 mnt in Q4CY'20. The figures mentioned above relate to production from all its mines.

BHP's output was up by 5% q-o-q when compared to 70.6 mnt in Q3CY'21. Higher production volumes reflect strong supply chain performance, increased ore car availability and continued ramp-up of the South Flank.

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 around 278-288 mnt for the fiscal year.

Iron ore sales up in Q4

The BHP Group's total iron ore sales from Pilbara on 100% basis were recorded at 73.2 mnt in Q4CY'21, up by 3% as compared to 70.8 mn t in Q4CY'20. On a quarterly basis too, sales increased by 3% as against 70.8 mn t in Q3CY'21.

Key updates

• South Flank project to be ramped up to full capacity in 3 years: The South Flank project, which is expected to be ramped up to its full production capacity of 80 mntpa (on 100% basis) over three years, remains on track with a peak rate of 45 mntpa achieved in the half year. The project is scheduled to commence in Jun'22 and is expected to be completed within 18 months.
  
  
• Samarco pellet production guidance unchanged: Samarco's pellet production was at 2.1 mn t (BHP share), following 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 mn t (BHP share).