BHP Group Plc (LON:BHP), today announced operational review for the nine months ended 31 March 2019.
Production guidance for the 2019 financial year remains unchanged for petroleum, copper, metallurgical coal and energy coal. Iron ore production guidance decreased to between 265 and 270 Mt (100% basis), reflecting impacts of Tropical Cyclone Veronica.
Group copper equivalent production(1) was broadly unchanged over the nine months ended March 2019, with volumes for the full year also expected to be in line with last year.
Full year unit costs for Petroleum, Escondida and Queensland Coal are expected to be in line with guidance(2). Unit costs for Western Australia Iron Ore are now expected to be below US$15 per tonne(2), reflecting impacts of Tropical Cyclone Veronica. Unit costs for New South Wales Energy Coal are now expected to be approximately US$51 per tonne(2) following changes to the mine plan.
All major projects under development are tracking to plan.
In Petroleum, the Atlantis Phase 3 project in the US Gulf of Mexico was approved and the Bélé-1 exploration well in Trinidad and Tobago encountered hydrocarbons (drilling still in progress) during the quarter.
|
Production
|
Mar YTD19
|
Mar Q19
|
Mar Q19 commentary
|
|
Petroleum (MMboe) (1) |
92 |
29 |
Lower seasonal gas sales at Bass Strait partially offset by higher Trinidad and Tobago volumes following maintenance in the previous quarter. |
|
Copper (kt) |
1,245 |
420 |
Increased production from Olympic Dam as surface operations returned to full capacity following acid plant outage in August 2018, offset by impact of expected lower copper grades at Escondida. |
|
Iron ore (Mt) |
175 |
56 |
Volumes at Western Australia Iron Ore (WAIO) reflected the impact of Tropical Cyclone Veronica. |
|
Metallurgical coal (Mt) |
31 |
10 |
A solid underlying operating performance at Queensland Coal was offset by the impacts of wet weather. |
|
Energy coal (Mt) |
20 |
7 |
Increased production at New South Wales Energy Coal (NSWEC) was offset by the impact of adverse weather at Cerrejón. |
BHP Chief Executive Officer, Andrew Mackenzie, said: “During the March 2019 quarter, we had a strong operational performance despite weather impacts across Australia and Chile. We approved Atlantis Phase 3 and now have five major projects under development. Those projects, our work on transformation, technology and culture, and our successful petroleum and copper exploration and appraisal programs will grow value and returns for years to come.”
