By Rhiannon Hoyle


BHP Group Ltd., the world's No. 1 miner by market value, on Thursday reported second-quarter output that was mostly higher on a year ago. However, BHP said production from its Escondida copper and BHP Mitsubishi Alliance coal operations are tracking toward the low end of full-year company guidance.


On copper output:

"[First-half] copper production increased by 12% to 834,000 [metric] tons. Guidance for the 2023 financial year remains unchanged.

"Escondida copper production increased by 5% to 511,000 tons primarily due to higher concentrator feed grade. The higher grade was partially offset by lower throughput and the impact of road blockades across Chile in the December 2022 quarter, which reduced availability of some key mine supplies.

"Full year production is trending towards the low end of the guidance range of between [1.080-1.180 million tons] as a result of lower than expected concentrator feed grade and throughput. Olympic Dam copper production increased by 138% to 104,000 tons primarily as a result of the major smelter maintenance campaign (SCM21) in the prior period. Continued strong concentrator and smelter performance resulted in near record material milled and concentrate smelted in the half year."


On iron-ore output:

"WAIO [Western Australia Iron Ore] achieved record production of 130 million tons (146 million tons on a 100% basis) in the December 2022 half year. This reflects continued strong supply chain performance, including improved car dumper utilization, and lower Covid-19 related impacts than the prior period. This was partially offset by wet weather impacts in the September 2022 quarter. South Flank ramp up to full production capacity of 80 million tons per annum (100% basis) by the end of the 2024 financial year remains on track. Natural variability in the ore grade is expected as the mine progresses through the close to surface material, however this is expected to stabilize as we move deeper into the ore body and achieve full ramp up."


On coal output:

"[First-half] BMA [BHP Mitsubishi Alliance] production increased by 5% to 14 million tons (27 million tons on a 100% basis) driven by an improvement in underlying truck productivity, in particular for the autonomous fleets following completion of the transitions at Goonyella and Daunia, higher yields as a result of mine sequencing, as well as the reduced impact of labor constraints relative to the prior period. This was partially offset by the impact of significant wet weather during the December 2022 half year. Full year production is trending to the low end of the guidance range of between 29 and 32 million tons (58 and 64 million tons on a 100% basis) as a result of significant wet weather. An additional long wall move at Broadmeadow has been accelerated into the June 2023 quarter due to improved mining rates."


On nickel output:

"Nickel West production decreased by 2% to 38,000 tons, reflecting the slower than expected ramp up of the refinery following planned smelter and refinery maintenance during the December 2022 quarter. Guidance for the 2023 financial year remains unchanged at between 80,000 and 90,000 tons, with volumes weighted to the second half of the financial year."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

01-18-23 1754ET