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The company logo adorns the side of the BHP gobal headquarters in Melbourne on February 21, 2023. The Australian multinational, a leading producer of metallurgical coal, iron ore, nickel, copper and potash, said net profit slumped 32 percent year-on-year to 6.46 billion US dollars in the six months to December 31. (Photo by William WEST / AFP) (Photo by WILLIAM WEST/AFP via Getty Images) Picture: AFP via Getty Images
BHP’s copper production fell 19% in the September quarter after severe weather, lower grades and maintenance affected its Chilean operations, Bloomberg reported.
The world’s biggest miner produced 400,700 tons of copper in the three months to September but kept its full-year production forecast unchanged.
BHP said the decline reflected planned reductions in ore grades, scheduled maintenance and temporary disruption from severe weather in Chile.
CEO Brandon Craig described the period as “maintenance-intensive” and said geopolitical tensions, trade uncertainty and high energy and freight costs remained industry headwinds.
BHP’s shares fell as much as 2.6% in early Sydney trading.
Chile is home to BHP’s biggest copper operations, including Escondida, the world’s largest copper mine. The company last week averted a strike at Escondida.
BHP realised an average copper price of $7.01/lb during the quarter, 53% higher than a year earlier.
Citigroup analyst Thiago Ojea said stronger copper prices should more than offset the weaker production, although Escondida’s ore grades remained a key variable.
Iron ore production was steady at 66.5 million tons, while BHP maintained its full-year iron ore forecast of 260 million to 272 million tons.
The miner also said its Jansen potash project in Canada remained on track for first production next year.