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BHP's Q2 iron ore production slides 6%; sees $600M hit to first-half

Published 01/22/2019, 01:30 AM
© Reuters.  BHP's Q2 iron ore production slides 6%; sees $600M hit to first-half
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  • BHP says it produced 58M metric tons of iron ore during its December quarter (Q2), down 6% Y/Y, and forecasts a $600M negative impact to H1 production due unplanned outages across its operations in Australia and Chile.
  • But BHP says H1 production was "broadly in line with the prior period despite planned maintenance and outages," and full-year production guidance remains unchanged for iron ore, petroleum, metallurgical coal and energy coal.
  • In November, BHP was forced to deliberately derail a runaway train loaded with iron ore in Western Australia's Pilbara region, which severed the crucial rail link between its mines and shipping hub in Port Hedland; BHP temporarily suspended all of its Pilbara rail operations to investigate the incident and recover the rogue train.
  • Productivity also was hurt by an unplanned acid plant outage at its Olympic Dam mine in South Australia in August and a plant fire at its Spence mine in Chile in September.
  • Meanwhile, BHP raises its full-year copper production forecast to 1.645M-1.74M tons after deciding not to sell its Cerro Colorado mine in Chile; copper output rose 2% Y/Y during Q2 to 416K tons.
  • Also, Q2 production of petroleum products fell 8% Y/Y to 30M boe.
  • Now read: The Race For SolGold Is Heating Up


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