Total iron ore production increased by four per cent to a record 248 Mt (281 Mt on a 100 per cent basis). Production of between 244 and 253 Mt (276 and 286 Mt on a 100 per cent basis) is expected in the 2021 financial year. We continue with our program to improve productivity and provide a stable base for our tightly coupled supply chain and this includes a major maintenance campaign on car dumper three planned for the September 2020 quarter, with a corresponding impact expected on production.

WAIO achieved record production, with higher volumes reflecting record production at Jimblebar and Yandi. Weather impacts from Tropical Cyclone Blake and Tropical Cyclone Damien, were offset by strong performance across the supply chain, with significant improvements in productivity and reliability following a series of targeted maintenance programs over the past four years. This enabled WAIO to produce at a record annualised run rate above 300 Mt (100 per cent basis) during the June 2020 quarter.

Consistent with our revised mine plan, the typical specification of Jimblebar fines improved to above 60 per cent Fe grade in the June 2020 quarter.

WAIO continues to focus on operating safely and despite the de-escalation of COVID-19 restrictions in Western Australia, a series of preventative measures remain in place to minimise the spread of COVID-19. WAIO has returned to normal shift rosters and has reopened the Perth office. To meet border controls introduced by the Western Australian Government, over 900 employees and contractors in business critical roles temporarily relocated to Western Australia, including the majority of specialist roles who are based interstate, such as train drivers and train load out operators. These employees remain in Western Australia.

Mining and processing operations at Samarco remain suspended following the failure of the Fundão tailings dam and Santarém water dam on 5 November 2015. Operation readiness activities for Samarco’s restart have been slowed as a result of a reduced workforce, as part of the COVID-19 response. 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 middle of the 2021 calendar year. Consistent with our other assets, measures designed to conduct safe operations in compliance with strict health and travel guidelines remain in place at South Flank to help reduce the spread of COVID-19.

T1: Operational Performance

T2: Iron Ore Production Summary in BHP Interest

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

Official Document