21st Jan 2020 05:46
(Alliance News) - Australian miner BHP Group PLC on Tuesday kept the majority of its annual production guidance unchanged, as it reported a solid interim output performance in copper and iron, but a decline in petroleum and coal.
For the six months to the end of December, BHP's copper production was 885,400 tonnes, up 7% from 825,300 tonnes the year before, as output grew from the Escondida and Pampa Norte mines in Chile, and the Olympic Dam mine in Australia.
The group kept its annual copper production guidance unchanged at 1.71 million tonnes to 1.82 million tonnes.
Iron ore production for the six month period increased by 2% to 121.4 million tonnes, up 2% from 119.3 million tonnes the prior year, following record production from Jimblebar in Australia, and a train derailment which impacted results in the prior year.
Annual iron ore output remains estimated at 242 million tonnes to 253 million tonnes.
Metallurgical coal production however dropped by 2% year-on-year to 20.3 million tonnes from 20.6 million tonnes due to major wash shutdowns at Goonyella, Peak Downs and Caval Ridge at BHP's Queensland Coal operations in Australia.
There was also low inventories at Blackwater, and a truck and shovel underperformance at South Walker Creek.
However BHP kept its guidance for financial 2020 between 41 million tonnes and 45 million tonnes.
Energy coal production decreased by 12% to 11.7 million tonnes from 13.3 million tonnes the year before, due to a weaker performance from the New South Wales Energy Coal operations in Australia, and the Cerrejon mine in Colombia.
Particularly for Australia, work in December was affected by bushfires, as smoke and dust reduced the air quality at BHP's operations, and the group said this factor could constrain its performance in the second half of the year.
However, BHP kept its production guidance for energy coal at 24 million to 26 million tonnes.
Finally, petroleum production declined by 9% to 57.4 million barrels of oil equivalent from 63.0 million barrels, due to natural field declines and the impact of tropical storm Barry in the Gulf of Mexico.
The group expects its annual petroleum output to be at the lower end of its guidance range of 110 million to 116 million barrels.
"We delivered solid operational performances across the portfolio in the first half of the 2020 financial year, offsetting the expected impacts of planned maintenance and natural field
decline. Production and cost guidance is unchanged, and we remain on track to deliver slightly higher production than last year. Our six major development projects are progressing well, and we continue to advance our exploration programs in petroleum and copper," said Chief Executive Mike Henry.
Shares in BHP closed down 0.1% at AUD41.20 on Tuesday in Sydney.
By Dayo Laniyan; [email protected]
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