BHP Expects Covid-19 to Remain a Challenge for Chile Mines -- Commodity Comment
July 19 2021 - 7:24PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Group Ltd. Tuesday reported a lift in fiscal-year
iron ore production, although weaker annual output of copper and
petroleum. Here are some remarks from its fourth-quarter
operational report:
On group output:
"We achieved production records at our Western Australia Iron
Ore operations and the Goonyella Riverside metallurgical coal mine
in Queensland. We maintained all-time high concentrator throughput
at our Escondida copper mine in Chile. Olympic Dam in South
Australia had its highest annual copper production since BHP
acquired the asset in 2005, and its best-ever gold production."
On Covid-19 impact on copper business:
"For the 2021 financial year, our Chilean assets operated with a
substantial reduction in their operational workforces as a result
of the preventative measures we implemented to mitigate the impact
of Covid-19. In the June 2021 quarter, escalating Covid-19
infections in Chile led to increased pressures on Chile's health
system, which resulted in strict quarantine measures and border
restrictions. We expect the operating environment for our Chilean
assets to remain challenging, with reductions in our on-site
workforce forecast to continue in the 2022 financial year."
On projects:
"During the year, we successfully achieved first production at
four major development projects, all of which were delivered on or
ahead of schedule and on budget. The South Flank iron ore project
in Western Australia and the Ruby oil and gas project in Trinidad
and Tobago both achieved first production in May 2021. The Atlantis
Phase 3 petroleum project and the Spence Growth Option copper
project achieved first production in the first half of the 2021
financial year."
On exploration:
"In exploration, we have continued to add to our early stage
options in future facing commodities throughout the year, with the
signing of an agreement for a nickel exploration alliance in Canada
and of a farm-in agreement for the Elliott copper project in
Australia. At Oak Dam in South Australia, next stage resource
definition drilling to inform future design commenced in May
2021."
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
July 19, 2021 19:18 ET (23:18 GMT)
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