BHP Group Ltd. on Tuesday said fourth-quarter output of commodities including iron ore, copper and coal rose following challenges posed by wet weather and labor constraints in previous quarters. Here are some remarks from its quarterly activities report.
"WAIO [Western Australia Iron Ore] production of 249 million [metric] tons was in line with the prior period, reflecting continued strong supply-chain performance and favorable weather compared to the prior period, offset by the impacts of temporary labor constraints relating to Covid-19, planned track renewal works in the March 2022 quarter and the planned major maintenance on the Jimblebar train load out and car dumper one in the first half. Our preventative maintenance programs continue to underpin the strength of the WAIO supply chain, delivering increased car dumper, reclaimer and ship loader availability year on year and enabling record sales volumes."
"BMA production decreased by 9% to 29 million tons. Significant wet weather impacts across most BMA operations and labor constraints, including Covid-19 related absenteeism, which impacted stripping and mine productivity, more than offset record production at the Broadmeadow mine. Following the automation of Daunia's truck fleet in November 2021, the automation of Goonyella's pre-strip truck fleet was completed in March 2022 with the Goonyella coal truck fleet expected to be fully autonomous by the end of the December 2022 quarter."
"Escondida copper production decreased by 6% to 1.004 million tons primarily due to higher than expected concentrator feed grade decline of 4%, public road blockades affecting access to site for both workers and supplies, and the impact of a reduced operational workforce from Covid-19. Despite these challenges, Escondida achieved record material mined for the 2022 financial year and near record concentrator throughput of 367,000 tons per day. Pampa Norte copper production increased by 29% to 281,000 tons reflecting the ramp up of the Spence Growth Option, partially offset by the impact of lower cathode production as a result of a 14% decline in Pampa Norte stacking feed grade. Olympic Dam copper production decreased by 33% to 138,000 tons as a result of the major smelter maintenance campaign, which included Covid-19 impacts on the availability of workforce and was subsequently completed in January 2022."
"Production decreased by 4% to 14 million tons, reflecting lower volumes due to an increased proportion of washed coal to capitalize on higher margins for higher quality coals, Covid-19 related labour constraints which impacted stripping performance and mine productivity, and wet weather. Higher quality coals now make up almost 90% of sales compared to approximately 60% of sales in the prior year. Production for the 2023 financial year is expected to be between 13 million and 15 million tons reflecting a continued focus on higher quality coals."
"Nickel West production decreased by 14% to 77,000 tons due to the significant impacts of Covid-19 related labor absenteeism and workforce shortages, and unplanned downtime at the oxygen plant leading to a 15-day smelter outage in the June 2022 quarter. Production for the 2023 financial year is expected to be between 80,000 and 90,000 tons, weighted to the second half of the year due to planned smelter maintenance in the first half."
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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