Investing.com-- BHP Group Ltd (ASX:BHP) said on Wednesday iron production in the fiscal third quarter rose 3% on strong output at its Western Australia operations, with the miner leaving its annual guidance unchanged.
Iron ore output from BHP’s Western Australia operations, on a 100% basis, was 69.8 million metric tonnes in the quarter to March 31, up 3% year-on-year but down 10% from the prior quarter, the world’s largest miner said in a statement.
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Shipments from BHP’s Western Australia operations, specifically at Port Hedland, were disrupted by two major tropical cyclones in February and March, which in turn hit production.
But BHP maintained its annual iron ore production guidance at 284-296 metric tonnes. The company also said it had “concluded iron ore sales contract negotiations” with China Mineral Resources Group, after earlier reports said China’s state-backed iron ore buyer had approved more purchases from BHP.
The agreement marked some concession in a months-long commercial dispute between BHP and top customer China.
BHP logged a 2% fall in average realized prices on its iron ore sales, to $84.91 per wet metric tonne.
BHP’s copper production fell 7% year-on-year in Q3 to 476.8 kilotonnes, hit by some disruptions at its Escondida and Pampa Norte mines.
The company clocked substantially higher realised prices on its copper sales– up 29% to $5.47 a pound– after prices of the red metal rallied in the first quarter.
BHP maintained its annual copper production outlook of between 1,900-2,000 kilotonnes, but said output was expected at the upper end of its guidance.