Total
iron ore production increased by three per cent to 181 Mt (205 Mt on a 100
per cent basis). Guidance for the 2020 financial year remains unchanged at
between 242 and 253 Mt (273 and 286 Mt on a 100 per cent basis).
WAIO
achieved record production, with higher volumes reflecting record
production at Jimblebar and the impact of the train derailment in the
previous period. Weather impacts from Tropical Cyclone Blake and Tropical
Cyclone Damien were offset by strong performance across the supply chain,
including improved car dumper reliability, with completion of a major car
dumper maintenance campaign in October 2019, implementation of improved
maintenance strategies, and delivery of consistent performance across our
mine operations. This strong performance has resulted in healthy stock
levels across our mines.
Consistent
with our revised mine plan, Jimblebar fines Fe grade has improved during
the March 2020 quarter, with the typical specification expected to return
to above 60 per cent in the June 2020 quarter.
WAIO
continues to focus on operating safely and has incorporated a series of
preventative measures to help reduce the spread of COVID-19. We have
reduced the number of workers on our sites, with those not critical to
operations working from home. To meet border controls introduced by the
Western Australian Government, over 900 employees and contractors in
business critical roles have been temporarily relocated to Western
Australia, including the majority of specialist roles who are based
interstate, such as train drivers and train load out operators.
Mining
and processing operations at Samarco remain suspended following the
failure of the Fundão tailings dam and Santarém water dam on 5
November 2015. Approval of the Corrective Operating Licence (LOC) for
Samarco’s operating activities at its Germano Complex was received in
October 2019. As a result of precautions taken for COVID-19, operation
readiness activities for restart have been slowed, with only critical
activities being undertaken. Restart can occur when the filtration system
is complete and Samarco has met all necessary safety requirements, and
will be subject to final approval by Samarco’s shareholders.
The
South Flank project is tracking well and remains on schedule for first
production in the 2021 calendar year. As at the end of March 2020,
approximately 80 per cent of the contracts awarded are being performed in
Australia, of which 95 per cent is within Western Australia. Some
interstate employees have relocated to Western Australia to help with the
project delivery. Consistent with our operations, the South Flank project
continues to implement increased measures to conduct safe operations in
compliance with strict health and travel guidelines put in place to help
reduce the spread of COVID-19.
T1:
Operational Performance
|
Mar YTD20
|
Mar Q20
|
Mar YTD20 vs
Mar YTD19
|
Mar Q20 vs Mar Q19
|
Mar Q20 vs Dec Q19
|
FY20 guidance
|
Iron ore (Mt)
|
181
|
60
|
3%
|
7%
|
-1%
|
242 - 253
|
WAIO (100% basis) (Mt)
|
205
|
68
|
4%
|
7%
|
0%
|
273 - 286
|
T2:
Iron Ore Production Summary in BHP Interest
|
|
Quarter ended
|
Year to date
|
Production (kt) (1)
|
BHP interest
|
May 2019
|
Jun 2019
|
Sep 2019
|
Dec 2019
|
Mar 2020
|
Mar 2020
|
Mar 2019
|
Newman
|
85%
|
15,608
|
17,058
|
16,316
|
15,766
|
16,449
|
48,531
|
49,564
|
Area C Joint Venture
|
85%
|
11,627
|
13,837
|
12,620
|
12,727
|
12,179
|
37,526
|
33,603
|
Yandi Joint Venture
|
85%
|
15,214
|
17,486
|
17,827
|
14,857
|
17,491
|
50,175
|
47,711
|
Jimblebar (2)
|
85%
|
13,658
|
14,209
|
14,239
|
17,045
|
13,911
|
45,195
|
44,337
|
Wheelarra
|
85%
|
10
|
5
|
3
|
-
|
-
|
3
|
154
|
Samarco
|
50%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
|
56,117
|
62,595
|
61,005
|
60,395
|
60,030
|
181,430
|
175,369
|
Note:
(1) Iron ore production is reported on a wet tonnes basis. (2) Shown on a
100% basis. BHP interest in saleable production is 85%.
T3:
Production and Sales
in kt
|
|
May 2019
|
Jun 2019
|
Sep 2019
|
Dec 2019
|
Mar 2020
|
Mar 2020
|
Mar 2019
|
Pilbara, Australia
|
Production
|
|
|
|
|
|
|
|
Newman
|
15,608
|
17,058
|
16,316
|
15,766
|
16,449
|
48,531
|
49,564
|
Area C Joint Venture
|
11,627
|
13,837
|
12,620
|
12,727
|
12,179
|
37,526
|
33,603
|
Yandi Joint Venture
|
15,214
|
17,486
|
17,827
|
14,857
|
17,491
|
50,175
|
47,711
|
Jimblebar (1)
|
13,658
|
14,209
|
14,239
|
17,045
|
13,911
|
45,195
|
44,337
|
Wheelarra
|
10
|
5
|
3
|
-
|
-
|
3
|
154
|
Total production
|
56,117
|
62,595
|
61,005
|
60,395
|
60,030
|
181,430
|
175,369
|
Total production (100%)
|
63,609
|
71,133
|
69,257
|
68,044
|
68,168
|
205,469
|
198,466
|
Sales
|
|
|
|
|
|
|
|
Lump
|
13,603
|
15,568
|
14,785
|
15,982
|
15,617
|
46,384
|
42,637
|
Fines
|
41,981
|
48,064
|
45,509
|
45,785
|
44,764
|
136,058
|
132,567
|
Total
|
55,584
|
63,632
|
60,294
|
61,767
|
60,381
|
182,442
|
175,204
|
Total sales (100%)
|
62,853
|
72,173
|
68,291
|
69,481
|
68,439
|
206,211
|
198,032
|
Samarco, Brazil
|
Production
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Sales
|
-
|
-
|
-
|
-
|
-
|
-
|
10
|
Official
Document
|