Australia: BHP's iron ore production drops 3% in Q3CY23; FY24 guidance intact

BHP Group has announced its results for the third quarter of calendar year 2023 (Q3CY23) recently. Iron ore production in Q3 stood at 63.2 million tonnes (mnt), down 3% q-o-q compared to 65.3 mnt in Q2CY23.

Production was lower due to tie-in activity for the Rail Technology Programme (RTP1), the ongoing ramp up and maintenance at the Central Pilbara hub (South Flank and Mining Area C), and the timing of track renewal maintenance.

Iron ore sales rise

The company's total iron ore sales rose by 1% q-o-q to 71.74 mnt in Q3 as against 71.17 mnt in Q2.

Other highlights

Production guidance intact: BHP's FY24 (July 2023- June 2024) iron ore production guidance from Western Australia remains unchanged at between 254-264.5 mnt. 100% guidance remains stable at 282-294 mnt.

South Flank to reach full capacity by end of FY24: South Flank remains on track to ramp up to full production capacity of 80 mnt/year (100% basis) by the end of FY24. The planned tie-in of the Port Debottlenecking Project (PDP1) continues to progress and remains on track to be completed in CY24.

Samarco pellet production guidance unchanged: Samarco's production guidance for FY24 remains unchanged at between 4 and 4.5 mnt. Pellet production in Q3 stood at 1.2 mnt.