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BHP Announces Operational Review for H1

Mining News - Published on Tue, 21 Jan 2020

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BHP Chief Executive Officer Mr Mike Henry said “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.”

ProductionDec H19Dec Q19Dec H19 vs Dec H18Dec Q19 vs Dec Q18Dec Q19 vs Sep Q19FY20 guidanceComment
Petroleum (MMboe)5728(9%)(6%)(4%)110-116 Lower end of range
Copper (kt)8854557%9%6%1.705-1.820
Escondida (kt)6023094%9%5%1.160-1.230Unchanged
Other copper(kt)28314715%11%7%545 - 590Unchanged
Iron ore (Mt)121602%4%(1%)242 - 253
WAIO (100% basis) (Mt)137682%4%(2%)273 - 286Unchanged
Metallurgical coal (Mt)2011(2%)6%17%41 -45
Queensland Coal (100% basis) (Mt)36200%9%21%73-79Unchanged
Energy coal (Mt)126(12%)(9%)8%24-26
NSW EC (Mt)74(11%)(13%)5%15-17Unchanged
Cerrejon (Mt)42(13%)(2%)13%'9Unchanged
Nickel (kt)3514(11%)(24%)(37%)-87Unchanged

Total iron ore production increased by two per cent to 121 million tonnes (137 million tonnes on a 100 per cent basis). Guidance for the 2020 financial year remains unchanged at between 242 and 253 million tonnes (273 and 286 million tonnes on a 100 per cent basis), with a stronger second half performance expected in line with BHP plans.

At WAIO, higher volumes reflected record production at Jimblebar and the impact of the train derailment in the December 2018 half year. This was partly offset by a major car dumper maintenance campaign (completed on 16 October 2019) to further improve port reliability and provide a stable base for our tightly coupled supply chain. Mine operations continued to deliver consistent performance.

Consistent with our revised mine plan, BHP expects Jimblebar fines Fe grade to improve in the second half of the 2020 financial year, with the typical specification returning to above 60 per cent in the June 2020 quarter.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. Approval of the Corrective Operating Licence for Samarco’s operating activities at its Germano Complex was received in October 2019 and operation readiness activities for restart have commenced. 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.

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Posted By : Rabi Wangkhem on Tue, 21 Jan 2020
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