Connect with us

Top Stories

BHP iron ore output drops 5% on maintenance work, labour crunch

BHP iron ore output drops 5% on maintenance work, labour crunch 1

(Reuters) -BHP Group on Tuesday posted a near 5% drop in first-quarter iron ore output due to maintenance work at its Jimblebar mine and a shortage of rail labour caused by COVID-19 border restrictions.

But the world’s largest miner left its annual production outlook unchanged, unlike rival Rio Tinto which last week cut https://www.reuters.com/business/rio-tinto-cuts-2021-iron-ore-shipments-forecast-labour-squeeze-2021-10-14 its shipments forecast because of the tight labour market.

The crunch had led to Rio and BHP asking train drivers https://www.reuters.com/business/australias-iron-ore-miners-face-train-driver-shortage-amid-covid-lockdowns-2021-07-21 to work more hours, as strict border restrictions impacted the flow of workers who tend to live in cities and fly in and fly out of remote mine sites.

There are also demand concerns stemming from a debt crisis in the Chinese property market, which along with Beijing’s stricter emission controls, have halved iron ore prices from a record peak in May.

BHP shares have sunk by around a quarter since the company posted its best annual results https://www.reuters.com/business/energy/bhp-sell-oil-gas-business-woodside-2021-08-17 in nearly a decade in August, where it also laid out plans to scrap its dual-listed structure and exit petroleum as part of a shift toward “future-facing commodities”.

Its stock was down 1.5% on Tuesday in a weaker overall market.

Iron ore production from Western Australia on a 100% basis fell to 70.6 million tonnes (mt) in the three months to September, from 74 mt a year earlier. But it was higher than a 68 mt forecast by RBC Capital Markets.

Output at the petroleum business, which is set to be bought by Woodside Petroleum, rose 3% to 27.5 million barrels of oil equivalent.

Metallurgical coal output dropped 9% to 8.9 mt, while thermal coal production jumped 17% to 4.2 mt. An acute global shortage of coal, including in China https://reut.rs/3BRV2w6, has driven a surge in the commodity’s prices and caused power outages.

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Aditya Soni)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now