BHP posts 5% jump in second-quarter iron ore output

The company produced its first iron ore in May last year at the $3.6-billion South Flank project in Western Australia, which is expected to eventually churn out 80 million tonnes (Mt) a year. Along with the Mining Area C, it will form the largest operating iron ore hub in the world and produce 145 Mt a year.

BHP, which is trying to offload some thermal coal assets, said metallurgical coal output fell 7% to 8 Mt in the December quarter, and reduced the annual forecast for the commodity to between 38 Mt and 41 Mt due to wet weather impact during the quarter along with COVID-19 related labour constraints.

Iron ore production from Western Australia was 73.9 Mt in the three months ended December, up from 70.4 Mt a year ago, the miner said.

BHP, the world’s largest miner, is also investing more in “future-facing commodities” as it divests its petroleum arm to Woodside Petroleum and targets more opportunities in nickel, a key component in the production of electric-vehicle batteries.

Shareholders of the global miner are set to vote on Thursday on whether to unify its structure, bringing its dual-listing in London within a single Australian-listed company.

Rio Tinto on Tuesday forecast slightly weaker-than-expected 2022 iron ore shipments, citing tight labour market conditions and production delays from the new greenfields mine at Gudai-Darri project.