BHP cuts iron ore forecasts after Australia cyclone

BHP cuts iron ore forecasts after Australia cyclone

BHP cuts iron ore forecasts after Australia cyclone

BHP shares fell 2.7% to $38.30 on news that Vale, its big Brazilian competitor, will restart a 30 million tonnes a year iron ore mine later this week. the mine has been stopped from producing by court action following the January 25 mine dam disaster at a nearby mine in Vale's southern mining system.

BHP increased its iron ore unit cost guidance from below US$14 per tonne to below $15/t.

Inventory of imported iron ore at Chinese ports stood at 148.9 million tonnes as of April 12, data compiled by SteelHome showed.

BHP lowered its production forecast to 265-270 million tonnes from 273-283 million tonnes, while Rio Tinto cut its estimate to 333-343 million tonnes from 338-350 million tonnes.

However, the miner maintained annual production guidance for copper at 1.65 million tonnes to 1.74 million tonnes.

On Tuesday, Rio Tinto warned of ongoing problems shipping iron ore from its port in Western Australia after damage from the cyclone, prompting it to also reduce its production target for the year.

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BHP's March quarter production dipped 3% to 56 million tonnes.

The global Magnetite Iron Ore market report introduces bifurcation of the market into multiple segments {Primarily hematite, Magnetite, Others}; {Iron and steel, Medication, Others} on the basis of product type, innovation, form, end-user application, and also different systems and processes.

"We approved Atlantis Phase 3 and now have five major projects under development".

The miner posted an 8% year-on-year drop in copper production in the third quarter, mainly due to lower output at the world's biggest copper mine, Escondida in Chile. "Those projects, our work on transformation, technology and culture, and our successful petroleum and copper exploration and appraisal programs will grow value and returns for years to come".

BHP Group Plc (LON:BHP), today announced operational review for the nine months ended 31 March 2019. Production guidance for the 2019 financial year remains unchanged and is expected to be broadly in line with the 2018 financial year. These included disruptions after a train derailment in a remote part of Australia, an acid-plant outage at the company's Olympic Dam copper mine in Australia and a plant fire at its Spence mine in Chile.

Year-to-date production is 175Mt, or 198Mt on a 100% basis, after a flat March production result of 56Mt.

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