BHP Group: Iron ore production up 8% y-o-y in Q3 CY'20

BHP Group has today announced its Q3 CY20 results. The production for the quarter Q3 CY20 from Western Australia iron ore operations was recorded at 74 mn t. The output picked up by 8% against Q3 CY19 at 69.3 mn t. Fig mentioned is on 100% basis.

On quarterly basis, output fell slightly as compared to 76 mn t in Q2 CY20. The record quarterly production at Jimblebar and strong supply chain performance was offset by the impact from planned major car dumper maintenance.

FY21(July 20- June'21) production guidance

BHP Group FY21 iron ore production target remains intact at 276-286 mn t for the fiscal year.

BHP Group's iron ore sales down in Q3 CY'20

BHP Group's total iron ore sales from Pilbara on 100% basis witnessed at 73.4 mn t for Q3 CY'20, up against 68.3 mn t in Q3 CY19. On a quarterly basis, sales dropped compared to 77 mn t in Q2 CY20.

BHP Group: Key Updates

1. 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 84% complete and is expected to be initiated by mid- CY21.

2. Mining and processing operations at Samarco remain suspended following the failure of the Fundao tailings dam and Santarem water dam on 5 November 2015. Restart can occur when the filtration system is complete and Samarco has met all necessary safety requirements, and will be subject to final approval by Samarco's shareholders.

3. Iron ore production in the Dec'20 quarter is expected to be impacted by Mining Area C and South Flank major tie-in activity, and maintenance on car dumper four, scheduled to align with the tie-in activity.