BHP Group reports 5% rise in iron ore production

BHP Group reports 5% rise in iron ore production

Visitors to the BHP booth speak with representatives during the PDAC convention in Toronto.

The Reuters-BHP Group reported a 5% rise in iron ore production for the second quarter, driven by strong performance at its Jimblebar mine and increased production at South Flank in Western Australia.

The company produced its first iron ore in May last year at the $3.6 billion South Flank project in Western Australia, which is expected to churn out 80 million tons Mt a year. It will form the largest iron ore hub in the world and produce 145 Mt a year, along with the Mining Area C.

BHP said that it fell 7% to 8 Mt in the December quarter, and reduced the annual forecast for the commodity to between 38 Mt and 41 Mt due to wet weather impact during the quarter, along with COVID- 19 related labour constraints.

Iron ore production from Western Australia was 73.9 Mt in the three months ended December, up from 70.4 Mt a year ago, the miner said.

BHP, the world's largest miner, is investing more in future-facing commodities as it divests its petroleum arm to Woodside Petroleum and targets more opportunities in nickel, a key component in the production of electric-vehicle batteries.

Shareholders of the global miner are going to vote on Thursday on whether to unify its structure, bringing its dual-listing in London within a single Australian-listed company.

Rio Tinto predicted slightly weaker than expected 2022 iron ore shipments, citing tight labour market conditions and production delays from the new greenfields mine at the Gudai-Darri project.