BHP reports record iron ore output for 2024 financial year
Copper production was the highest in more than 15 years
17 July 2024 - 11:00
by Jacqueline Mackenzie
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Resources group BHP has reported a strong operational performance for the year ended June, with record iron ore production and highest copper production in over 15 years.
“We finished the year with a strong fourth quarter, achieving several production records and we are meeting current production and unit cost guidance for all commodities, BHP said in its operational review for the year on Wednesday.
Western Australia iron ore continued its strong performance, delivering a second consecutive year of record production as a result of ongoing incremental improvements along its supply chain, as the group progresses towards its medium-term goal of increasing production to greater than 305-million tonnes per year.
“We achieved a strong performance across our copper business globally, underpinned by the highest production in four years at Escondida and another year of record production from Spence in Chile. Successful integration at Copper South Australia has delivered additional production tonnes, and exceeded the annualised synergies planned at the time of the OZL acquisition,” it said.
CEO Mike Henry said 2024 production guidance was achieved for all commodities, with metallurgical coal achieving the upper end of its revised guidance.
Total copper production increased 9% and is expected to increase a further 4% in the 2025 financial year.
The group achieved strong prices in key commodities. The average realised prices for copper and iron ore were higher while metallurgical coal prices remained relatively stable and nickel and energy coal prices were lower.
Unit cost guidance for 2024 is expected to be met at Escondida, WAIO and Spence, and revised unit cost guidance is expected to be met at BMA.
For the full-year ended June 30, BHP iron ore production increased 1% to a record 260 tonnes. Production for 2025 is expected to be between 255 tonnes and 265.5 tonnes.
Total copper production increased 9% to 1,865 kilotonnes and is expected to be between 1,845 kilotonnes and 2,045 kilotonnes in 2025.
During the year, the group successfully completed the sale of the Blackwater and Daunia metallurgical coal operations in April.
“After a challenging year at BMA, we have plans in place to increase production to between 43-million tonnes per year and 45-million tonnes per year (100%) in the next five years,” it said.
“We continued to execute against our strategy, progressing growth options in the commodities the world needs to meet the demands of the energy transition and population growth,” it said.
This includes the group’s Jansen potash mine in Canada, where construction of stage 1 is now more than 50% complete and stage 2 is under way. First production is expected in 2026 and will be a major global producer of potash by the end of the decade.
On July 22, the group announced the temporary suspension of our Western Australia Nickel operations from October as a result of an oversupply in the global nickel market and protracted low nickel prices.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BHP reports record iron ore output for 2024 financial year
Copper production was the highest in more than 15 years
Resources group BHP has reported a strong operational performance for the year ended June, with record iron ore production and highest copper production in over 15 years.
“We finished the year with a strong fourth quarter, achieving several production records and we are meeting current production and unit cost guidance for all commodities, BHP said in its operational review for the year on Wednesday.
Western Australia iron ore continued its strong performance, delivering a second consecutive year of record production as a result of ongoing incremental improvements along its supply chain, as the group progresses towards its medium-term goal of increasing production to greater than 305-million tonnes per year.
“We achieved a strong performance across our copper business globally, underpinned by the highest production in four years at Escondida and another year of record production from Spence in Chile. Successful integration at Copper South Australia has delivered additional production tonnes, and exceeded the annualised synergies planned at the time of the OZL acquisition,” it said.
CEO Mike Henry said 2024 production guidance was achieved for all commodities, with metallurgical coal achieving the upper end of its revised guidance.
Total copper production increased 9% and is expected to increase a further 4% in the 2025 financial year.
The group achieved strong prices in key commodities. The average realised prices for copper and iron ore were higher while metallurgical coal prices remained relatively stable and nickel and energy coal prices were lower.
Unit cost guidance for 2024 is expected to be met at Escondida, WAIO and Spence, and revised unit cost guidance is expected to be met at BMA.
For the full-year ended June 30, BHP iron ore production increased 1% to a record 260 tonnes. Production for 2025 is expected to be between 255 tonnes and 265.5 tonnes.
Total copper production increased 9% to 1,865 kilotonnes and is expected to be between 1,845 kilotonnes and 2,045 kilotonnes in 2025.
During the year, the group successfully completed the sale of the Blackwater and Daunia metallurgical coal operations in April.
“After a challenging year at BMA, we have plans in place to increase production to between 43-million tonnes per year and 45-million tonnes per year (100%) in the next five years,” it said.
“We continued to execute against our strategy, progressing growth options in the commodities the world needs to meet the demands of the energy transition and population growth,” it said.
This includes the group’s Jansen potash mine in Canada, where construction of stage 1 is now more than 50% complete and stage 2 is under way. First production is expected in 2026 and will be a major global producer of potash by the end of the decade.
On July 22, the group announced the temporary suspension of our Western Australia Nickel operations from October as a result of an oversupply in the global nickel market and protracted low nickel prices.
MackenzieJ@arena.africa
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