Iron ore continues to be the exemplar for BHP as the major miner generated record sales volumes from the commodity in the 2021–22 financial year (FY22).
BHP sold 284 million tonnes (Mt) of iron ore (100 per cent basis) across the 12 months, as South Flank’s ramp up to full production capacity (80 million tonnes per annum) tracks ahead of schedule.
An average rate of 67Mtpa was achieved at South Flank in the June 2022 quarter contributing to record production from the Mining Area C (MAC) hub and record lump sales.
BHP produced 253Mt of iron ore in FY22, with the Western Australia Iron Ore (WAIO) operations making up 249Mt of that and Samarco the remaining 4Mt. This was in line with BHP’s iron ore production from the 2020–21 financial year.
The major miner said its iron ore output in FY22 reflected strong supply chain performance and favourable weather compared to the prior period, offset by the impacts of temporary labour constraints relating to COVID-19.
BHP said it was also affected by planned track renewal works in the March 2022 quarter and planned major maintenance at its Jimblebar operations, including train load out and car dumper one.
“Our preventative maintenance programs continue to underpin the strength of the WAIO supply chain, delivering increased car dumper, reclaimer and ship loader availability year on year,” BHP said in its full-year operational report.
Elsewhere, BHP’s copper production decreased 4 per cent year-on-year to 1.5 million tonnes. Despite this, the company achieved its revised full-year guidance.
BHP’s Pampa Norte copper operations in Chile increased its output by 29 per cent to approximately 281,000 tonnes reflecting the ramp up of the Spence Growth Option (SGO).
Olympic Dam decreased by 33 per cent to approximately 138,000 tonnes after being affected by a major smelter maintenance campaign. BHP said the South Australian operation delivered near-record production in the June quarter following the successful ramp up of the smelter to full quarter in April.
BHP also achieved full-year guidance for metallurgical coal, while full-year nickel production was lower than revised guidance due to a smelter outage in the June quarter.
BHP chief executive officer Mike Henry was pleased with the strong full-year performance, but said market conditions would remain volatile going forward.
“Broader market volatility continues, and we expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labour market tightness and supply chain constraints,” Henry said.
“Over the year ahead, China is expected to contribute positively to growth as stimulus policies take effect, however, the continuing conflict in the Ukraine, the unfolding energy crisis in Europe and policy tightening globally is expected to result in an overall slowing of global growth.”