Australia: BHP's iron ore production soars in Q2CY23, guidance increases

BHP Group has announced its second quarter of calendar year 2023 (Q2CY23) results recently. Iron ore production in Q2CY23 stood at 65.3 million tonnes (mnt), increased by 9% q-o-q in Q2CY23 compared to 66.16 mnt in Q1CY23.

Production has increased despite unfavourable impacts from tropical cyclone Ilsa, due to strong supply chain performance and the prior period impacts from the temporary shutdown of operations following the fatality, as well as the tie-in activity of the Port Debottlenecking Project.

Iron ore sales rise

The company's total iron ore sales rose by 6.7% q-o-q to 71.1 mnt in Q2CY23 as against 66.6 mnt in Q1CY23.

Other highlights

Production guidance increased: BHP's FY24 (July 2023- June 2024) iron ore production guidance from Western Australia now stands at around 254-264.5 mnt against 249-260 mnt announced previously. 100% guidance increased to 282-294 mnt.

South Flank to reach full capacity in the end of FY24: The South Flank ramp-up to the full production capacity of 80 mnt per year is also likely (on a 100% basis) by the end of the 2024 financial year. Current year performance has contributed to record annual production at the Mining Area C hub and record WAIO lump sales. Additionally, the deployment of autonomous haul trucks at South Flank was completed in May 2023.

Samarco pellet production guidance inched up: Production for the 2023 financial year is expected to be at the top of the guidance range of 4 and 4.5 mnt (BHP share). Pellet production in Q2CY23 stood at 1.2 million tonnes (mnt), increased by 17% q-o-q.