Tough year for BHP

Pilbara News - - PILBARA NEWS - NIck Evans

BHP Bil­li­ton has fallen well short of its 260 mil­lion tonne iron ore ex­port tar­get for last fi­nan­cial year.

BHP’s Pil­bara mines fell 3mt short of the com­pany's fi­nan­cial year ex­port tar­get — it­self a 10mt re­vi­sion of ear­lier es­ti­mates — and the com­pany did not give an up­date on whether it had reached its goal of cut­ting av­er­age unit costs to $US15/t for the year.

The global min­ing gi­ant said it ex­pected to ship 265 mil­lion to 275 mil­lion tonnes from its Pil­bara mines this fi­nan­cial year, and to reach a “sys­tem ca­pac­ity” of 290mt in the 2019 fi­nan­cial year.

BHP’s share of pro­duc­tion from its global iron ore op­er­a­tions fell 2 per cent to 227 mil­lion tonnes be­cause of the clo­sure of the Sa­marco mine in Brazil af­ter the tail­ings dam fail­ure that still dogs the com­pany

Chief ex­ec­u­tive An­drew Macken­zie said over the next 12 months the com­pany ex­pected vol­umes and costs across its min­er­als busi­nesses to ben­e­fit from a con­tin­ued drive to im­prove pro­duc­tiv­ity safely.

“We can cre­ate sig­nif­i­cant value through fur­ther cost re­duc­tions, tak­ing ad­van­tage of la­tent ca­pac­ity in our as­sets and in­vest­ing in low-cap­i­tal projects,” he said.

“These ini­tia­tives are ex­pected to grow pro­duc­tion by 5 per cent in cop­per, up to 4 per cent in iron ore and 3 per cent in met­al­lur­gi­cal coal in the next fi­nan­cial year.

“In petroleum, we have de­liv­ered strong per­for­mance from our con­ven­tional as­sets.”

Pic­ture: Me­gan Pow­ell

Op­er­a­tions at BHP Bil­li­ton's Mt Whale­back Mine in New­man.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.