BHP Q1 Iron Ore Production Rises 2% Y/Y, Copper Increases 4%
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BHP Group BHP announced that its iron ore production rose 2% year over year to 64.6 Mt in the first quarter of fiscal 2025 (ended Sept. 30, 2024). This was attributed to an increase in production at Western Australia Iron Ore (WAIO) following the commissioning of the Port Debottlenecking Project and completion of the South Flank ramp-up.
Iron ore production at Samarco increased 4% in the quarter due to the early resumption of Pelletizing Plant No. 4. BHP’s iron ore production guidance for fiscal 2025 remains unchanged at 255-265.5 Mt. WAIO's production is expected to be between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).
BHP Reports a 4% Rise in Copper Production
BHP’s copper output improved 4% year over year to 476 kt in the first quarter of fiscal 2025.
Copper production at Escondida increased 11% year over year as mining progressed into areas of higher-grade ore as well as increased concentrator feed grade. This was partially offset by planned lower cathode production.
Copper output at Pampa Norte slumped 23%. Production at Spence was down 13% due to lower cathode production as a result of planned quarterly maintenance at the concentrator and a decline in stacked feed grade.
Production was down on a year-over-year basis reflecting the impact of Cerro Colorado entering temporary care and maintenance in December 2023. It had contributed 9.5 kt of copper output in the first quarter of fiscal 2024.
Production from Copper South Australia was reported at 73 kt, 2% higher than the prior fiscal quarter aided by upbeat underlying operational performance. Production was lower at Prominent Hill due to minor pit geotechnical instability and ventilation constraints, which impacted trucking capacity and production. BHP assured that these issues have been rectified.
Antamina’s copper production rose 12% to 36 kt on higher ore grade and recoveries, partially offset by planned lower concentrator throughput.
The company expects copper production within the range of 1,845-2,045 kt in fiscal 2024.
BHP Temporarily Suspends Nickel West Operations
Nickel production was down 3% year over year to 19.6 kt in the fiscal first quarter. This reflected BHP’s decision to temporarily suspend the Nickel West operation starting in October 2024, citing lower nickel prices.
Starting January 2025, BHP plans to invest around $300 million annually to keep the operation in readiness for a potential restart in case the market rebounds.
BHP’s Energy & Steelmaking Coal Output Up Y/Y
Energy coal production rose 2% year over year to 3.7 Mt in the quarter. Steelmaking coal production was 4.5 Mt, which declined 19% from the year-ago quarter. Production in the first quarter of fiscal 2024 included 1.8 Mt (3.7 Mt on a 100% basis) from the Blackwater and Daunia mines that were divested on April 2, 2024. Excluding these volumes, production of steelmaking coal was up 20% year over year.
