By Rhiannon Hoyle

 

BHP Group Ltd. Wednesday reported a 6% increase in first-half iron-ore production, but said metallurgical coal and copper production both fell 5%. Here are some remarks from the operational report.

On petroleum:

"Total petroleum production decreased by 12% to 50 million barrels of oil equivalent. Guidance for the 2021 financial year remains unchanged at between 95 and 102 million barrels. Volumes are expected to be in the upper half of the guidance range as additional production from Shenzi, following the acquisition of a further 28% working interest, is partially offset by the impacts of significant hurricane activity in the Gulf of Mexico."

On copper:

"For the December 2020 half year, our Chilean assets operated with a reduction in their operational workforces of approximately 30% as a result of the comprehensive plan we have implemented for Covid-19. The operating environment across our Chilean assets is expected to remain challenging, with reductions in our workforce forecast to remain substantial during the March 2021 quarter."

On iron ore:

"Western Australia Iron Ore production increased by 6% to a six month record 128 million tons, reflecting record production at Jimblebar and strong performance across the supply chain, with significant improvements in car dumper productivity and reliability. This was partially offset by weather impacts and the planned Mining Area C and South Flank major tie-in activity. Production in the March 2021 quarter is expected to be impacted by planned Ore Handling Plant maintenance across the mines and continued Mining Area C and South Flank tie-in activity."

On metallurgical coal:

"Metallurgical coal production decreased by 5% to 19 million tons. Guidance for the 2021 financial year remains unchanged at between 40 and 44 million tons with a stronger second half performance projected in line with our plans. Volumes are expected to be at the lower half of the guidance range following significant wet weather impacts during the December 2020 quarter. We continue to monitor for any potential impacts on volumes from restrictions on coal imports into China."

 

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

 

(END) Dow Jones Newswires

January 19, 2021 18:19 ET (23:19 GMT)

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