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BHP Group Ltd on Wednesday reported a rise in iron ore output at the start of its new financial year, though the miner cautioned on macroeconomic uncertainty, energy costs and labour markets.
In the three months to September 30, iron ore production rose 3% year-on-year to 65.1 million tonnes.
Copper output rose 9% annually to 410,000 tonnes, though production of metallurgical coal weakened 1% to 6.7 million tonnes. Energy coal production tumbled 38% to 2.6 million tonnes.
BHP left annual output guidance unchanged. It expects copper production between 1.6 million and 1.8 million tonnes. Iron ore production between 249 million and 260 million tonnes is expected.
"Copper production was up 9% on the same quarter last year, with strong concentrator throughput at Escondida and record quarterly anode production at Olympic Dam. WAIO continued to perform strongly, with production up by 3% relative to the same period last year, and we managed through substantial rainfall and labour constraints in our coal assets with production only down marginally year-on-year. Our full year production and unit cost guidance is unchanged," Chief Executive Mike Henry said.
The Escondida copper asset is located in Chile. Olympic Dam is based in South Australia. WAIO refers to Western Australia Iron Ore.
Henry added: "We expect global macro-economic uncertainty in the short term to continue to affect supply chains, energy costs, labour markets and equipment and materials availability. BHP remains well positioned, with a portfolio and balance sheet to withstand external challenges and a strategy positioned to benefit from the global mega-trends of decarbonisation and electrification."
BHP shares traded 0.8% lower at A$39.30 each in Sydney on Wednesday afternoon.
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