Production outages cost BHP US$600m

Company News

by Anna Napoli

BHP (ASX:BHP) says productivity for the December 2018 half has been impacted by unplanned production outages at Olympic Dam, Spence and Western Australia Iron Ore with a negative impact of about US$600 million.

BHP's production guidance for the 2019 financial year remains unchanged for petroleum, iron ore, metallurgical coal, and energy coal.

Meantime, total copper production guidance has been bumped up to between 1645 and 1740 kt.

The company says this reflects the retention of Cerro Colorado.

The update comes following news the Western Australian Government says it believes the mining company has underpaid iron ore royalties over a period of several years.

The government says it is negotiating with BHP to resolve the matter in the best interests of the state.

Shares in BHP (ASX:BHP) closed 0.27 per cent higher at $33.20.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.