By Rhiannon Hoyle


BHP Group, the world's biggest miner by market value, on Wednesday reported record annual iron-ore production and said its copper production was at the highest in more than 15 years.

The company said it met production guidance for all commodities, with metallurgical coal output reaching the upper end of a revised guidance range. Here are some remarks from BHP's fourth-quarter operations report.


On BMA metallurgical coal joint venture:

"Production decreased as a result of increased stripping to improve supply chain stability and restore depleted inventory positions which arose from extended weather impacts and labor constraints over recent years, and the divestment of Blackwater and Daunia. Production was also impacted by an extended longwall move and geotechnical faulting at Broadmeadow during 1H FY24, and the temporary suspension of operations following the fatality of a team member at Saraji.

"In the next five years, we expect to increase production to between 21.5 [million metric tons] and 22.5 million tons per annum (43 and 45 million tons per annum on a 100% basis) once BMA is operating with sustainable inventory levels and strip ratios normalize."


On Copper South Australia:

"Successful integration following the acquisition of [Oz Minerals] in FY23 and strong underlying operational performance across the asset delivered increased production, as well as record material mined and concentrate smelted at Olympic Dam. We have exceeded our planned annualized synergies, such as the processing of Prominent Hill and Carrapateena concentrate at Olympic Dam into higher-margin cathode and refined gold, resulting in annual records for cathode and gold production at Olympic Dam."


On Escondida mine:

"Increased production was primarily due to a higher concentrator feed grade of 0.88% (including grade of 0.99% achieved in Q4 FY24), up from 0.82% in FY23, as mining progressed into areas of higher-grade ore as planned following the implementation of measures to manage geotechnical events in FY23. This was partially offset by planned lower cathode production, as a result of prioritizing concentrator throughput in prior years."


On Western Australia Iron Ore:

"WAIO achieved another full-year production record of 255 million tons (287 million tons on a 100% basis), reflecting strong supply chain performance with increased capacity unlocked by the Port Debottlenecking Project 1 (PDP1) and record production at South Flank. These more than offset the impacts of the continued tie-in activity for the Rail Technology Programme 1 (RTP1).

"South Flank completed ramp up to full production capacity of 80 million tons per annum (100% basis) in FY24 as planned, which contributed to WAIO achieving record lump sales for the year. Following commissioning in December 2023, PDP1 has enabled higher production volumes and contributed to record sales for the year. Ramp up remains on track to be completed in CY24."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

07-16-24 2012ET