BHP to review 2019 guidance in wake of tropical cyclone
Storm on Australia's west coast expected to cut annual production by as much as 8-million tons
Mining, metals and petroleum company BHP Group says it is reviewing its full-year guidance following disruptions caused by tropical cyclone Veronica in Australia.
Other miners, including Rio Tinto, have already said the cyclone, which affected Australia’s west coast, would weigh on production levels in 2019. BHP said the storm would probably reduce production by about 6-million to 8-million tons.
“As a result, our 2019 financial year production and unit cost guidance are currently under review,” the group said.
BHP’s Australia-listed shares were marginally lower on Tuesday afternoon ahead of the JSE’s opening. The group said a revised production and unit-cost guidance would be disclosed once finalised.
“We are engaging with our customers and intend to meet our contractual commitments,” it said.
BHP’s port and rail operations in Port Hedland, Western Australia, were ramping-up after being suspended due to the cyclone.
“While initial inspections show no major damage to our operations, isolated flooding both on site and sections of the rail leading into the port has limited train movements. Consequently, the port is currently operating at reduced rates and not expected to return to full capacity until later this month,” BHP said.