BHP saw 11 per cent jump in total productionChristian Fernsby ▼ | July 17, 2019
BHP has finished the financial year on a solid footing, with an 11 per cent jump in total production across its commodities in the June quarter setting it up for a strong full-year result in August.
BHP Production of the miner's biggest cash generator, iron ore, jumped 12 per c
But iron ore production fell 2 per cent compared to the same period a year ago. And on an annual basis, production of the key steelmaking commodity was flat.
The June quarter production result meant BHP met its revised guidance for both iron ore and copper for fiscal 2019, and exceeded full-year production guidance for petroleum.
BHP's full year 2019 result will be hit by three significant one-off items totalling in excess of $US600 million, including a $US260 million provision for the accelerated decommissioning of Samarco's upstream tailings dams in Brazil, $US100 million of restructuring and redundancy costs, and a $US250 million increase to its closure and rehabilitation provision for closed mines.
The miner also said improvements in productivity were mostly "offset by the impact of unplanned production outages of $US835 million during the first half, in addition to grade decline in copper, and higher unit costs in coal". ■