CAPITAL MARKETS

Decent quarter for BHP

BHP has left its production and cost guidance for the 2018 financial year unchanged after a solid...

Kristie Batten

This article is 7 years old. Images might not display.

Iron ore production of 56 million tonnes was 3% lower than the same quarter of last year with improved mine productivity and record volumes at Jimblebar offset by planned maintenance and lower opening stockpile levels following the June fire at the Mt Whaleback plant.

Copper was the standout for BHP, with a 14% rise in production to 404,000 tonnes the result of increased volumes from Escondida and the start-up of the Los Colorados extension project.

Coal production was steady while petroleum output was 8% lower year-on-year.

BHP CEO Andrew Mackenzie said the quarterly performance kept the company on track to deliver 7% volume growth in FY18.

“We manage the portfolio for value and returns. Our transition to lower-cost, high-return, latent capacity projects is delivering results, with first copper production achieved from the Los Colorados extension project at Escondida and Olympic Dam’s Southern Mining Area during the quarter,” he said.

“Major development work has commenced on the recently approved growth projects, Mad Dog Phase 2 and the Spence Growth Option, with both set to become operational as their respective markets in oil and copper rebalance.”

The company has four major growth projects approved with capital costs of $7.5 billion.

Exploration spend during the quarter was $43 million.

BHP shares opened 1.2% lower at A$26.99.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.