BHP (ASX:BHP) shrugs off labour shortages for record quarterly shipments

Company News

by Lauren Evans

Mining giant BHP (ASX:BHP) has lifted shipments in the December quarter to near-record levels.

The output came as BHP ramped up production from its new South Flank mine offsetting impacts from bad weather, labour shortage, and major maintenance programs.

Iron ore production for the quarter reached 66.1 metric tonnes, up 4 per cent from the prior quarter. Production guidance for the 2022 financial year remains unchanged for iron ore, energy coal and nickel.

Meanwhile BHP said the drop in copper guidance reflects lower produce guidance for Pampa Norte, while metallurgical coal guidance has been reduced as a result of significant wet weather impacts and Covid-19 related labour constraints.

"Our continuing focus on people and on operational reliability enabled us to achieve near record production in iron ore and to reduce the impacts of adverse weather and COVID-19 related labour constraints in our operations. Cost control remained strong across the business, in the face of a more inflationary environment,“ said chief executive officer Mike Henry.

Shares in BHP (ASX:BHP) are trading 0.4 per cent lower at $46.50.

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