Investing.com — BHP Group Ltd (ASX:BHP) disclosed its third-quarter financial results on a Monday announcement. The company’s steel ore production increased by 3%. The robust production growth in its Western Australian operations had a significant impact. The firm did not alter its annual production targets.
BHP’s steel ore production from its Western Australian operations amounted to 69.8 million metric tons. This figure represents a 100% increase in the third quarter compared to March 31st. The world’s largest mining company shared the data in its statement. The production grew by 3% year-on-year. However, it declined by 10% compared to the previous quarter.
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BHP’s steel ore sales declined. Its Port Hedland operations were particularly affected. Two significant tropical cyclones occurred in February and March, negatively impacting production.
Despite this, BHP maintained its annual steel ore production guidance. The target remained between 284-296 million metric tons. The company also made an important announcement. It finalized negotiations with China Mineral Resources Group for iron ore sales. Previously, China’s state-owned iron ore buyer had approved additional purchases from BHP.
This agreement was a significant development. The commercial dispute between BHP and its largest customer, China, had been ongoing for months.
BHP’s average iron ore sales prices increased by 2% year-on-year. The average price per metric ton was $84.91.
BHP’s copper production declined by 7% in the third quarter year-on-year. The production amounted to 476,800 metric tons. Some disruptions occurred at Escondida and Pampa Norte mines. However, the company managed to secure high copper prices. The average price per pound was $5.47, a 31% increase.
BHP maintained its annual copper production target. The range remained between 1,900-2,000 metric tons. The company also expressed optimism. It expected production to exceed the target’s upper limit.
Iron Ore Production
BHP’s iron ore production in Western Australia reached 69.8 million metric tons in the third quarter, marking a 100% increase from the previous quarter’s end. This robust production growth contributed to the company’s year-on-year production increase of 3%. However, the production declined by 10% compared to the previous quarter.
Iron Ore Sales
Despite the production decline, BHP’s iron ore sales suffered a setback. The Port Hedland operations were significantly impacted by two tropical cyclones in February and March. These weather events negatively affected the production.
Iron Ore Sales Agreement with China Mineral Resources Group
BHP made an important announcement regarding its iron ore sales. It finalized negotiations with China Mineral Resources Group for the sale of iron ore. This agreement came after China’s state-owned iron ore buyer had approved additional purchases from BHP.
Iron Ore Prices
BHP’s average iron ore sales prices increased by 2% year-on-year. The average price per metric ton was $84.91.
Copper Production
BHP’s copper production declined by 7% in the third quarter compared to the same period last year. The production amounted to
