20th Oct 2020 07:09
(Alliance News) - BHP Group PLC on Tuesday said it has made good progress with its development projects in the first quarter of its new financial year, with production and unit cost guidance unchanged.
The Anglo-Australian miner said it produced 26.7 million barrels of oil equivalent in the first quarter ended September 30, down 9% from 29.2 million barrels a year before but up 1% from 26.3 million in immediately prior quarter.
BHP said the slight increase in petroleum volumes from the fourth quarter of financial 2020 was due to first production in July from Atlantis Phase 3 project in the US Gulf of Mexico.
Iron ore production was up 8% to 66.0 million tonnes from 61.0 million tonnes a year prior, but down 1% from 66.7 million tonnes in the quarter before. Record quarterly production at Jimblebar in Australia, and strong supply chain performance were the causes of the quarter-on-quarter increase, BHP said.
Copper equivalent production was down 4% year-on-year to 413.2 million tonnes from 489.5 million tonnes, and marginally down from the prior quarter's 413.9 million tonnes. Copper and copper equivalent production was affected by lower cathode production at some facilities due to the impacts of Covid-19 as well as planned maintenance, the company explained.
Chief Executive Mike Henry said: "“BHP has started the new financial year with a strong first quarter of safety and production performance. Group production rose two per cent from a year ago driven by solid results in metallurgical coal and iron ore, our major growth projects made good progress, and we secured more options in copper, nickel and oil."
The Jansen potash project in Canada remains on track for final investment decision in the middle of the 2021 calendar year, BHP said. The company expects first production at the Spence growth project at Spence copper mine in northern Chile between this coming December 2020 and March 2021.
"With a period of uncertainty to navigate, our efforts to be safer, more reliable and lower cost are as important as ever. We are alive to the challenges ahead but we look forward with confidence in our people and our strategy," Henry added.
All production and unit cost guidance remains unchanged for the 2021 financial year, except for Cerrejon production guidance which is under review due to an ongoing strike.
BHP closed down 1.6% at AUD35.90 in Sydney on Tuesday.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
BHP Group