BHP 1Q Output Down on Maintenance Work -- Update

   By Rhiannon Hoyle 
 

SYDNEY--BHP Group Ltd. (BHP.AU) said production of commodities including iron ore, coal and petroleum was weaker during its first fiscal quarter, mainly because of planned maintenance work.

BHP, the world's biggest mining company by market value, said Thursday it produced 61 million metric tons of iron ore during the three months through September, down 1% on the same period a year ago. Volumes were lower because of maintenance activities at the Port Hedland port facility on Australia's northwest coast aimed at improving reliability, it said.

BHP is the world's third-biggest exporter of iron ore, which it produces from a vast network of mines in Australia's remote Pilbara mining region.

At 29 million barrels of oil equivalent, the company produced 11% less petroleum in its first quarter than the year-earlier period. That was in big part due to planned maintenance at the North West Shelf operations and Tropical Storm Barry in the Gulf of Mexico, BHP said.

Still, BHP reiterated its earlier annual production projections, including iron-ore production of 242-253 million tons and petroleum output of 110-116 million barrels.

"While group production for the quarter decreased slightly due to the expected impacts of planned maintenance and natural field decline in petroleum, guidance remains unchanged and we are on track to deliver slightly higher volumes than last financial year," Chief Executive Andrew Mackenzie said.

All major projects are also on schedule and on budget, he said.

BHP said it expects the first stage of its Jansen potash project in North America to be presented to the board for final investment decision by February 2021.

Among other commodities, the company reported a 5% lift in quarterly copper production as record throughput at Escondida's processing facilities offset planned maintenance at its Olympic Dam mine. It said output of metallurgical coal and energy coal fell by 10% and 15%, respectively, also due to plant maintenance and, for energy coal, a change in strategy to focus on higher quality products.

Write to Rhiannon Hoyle at [e-mail]

(END) Dow Jones Newswires

October 16, 2019 18:06 ET (22:06 GMT)

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