BHP produced 121mn mt (137mn mt on a 100pc basis) of iron ore in H1 FY2020 ended Dec 31, 2019, up 2pc compared to the same period in 2019. 

 

In Q2, the company increased its iron ore production by 4pc to 60mn mt against the same quarter a year ago but down 1pc compared to the previous quarter. The company’s production guidance for the ore in 2020 remains unchanged at 242-253mn mt.

 

The average realized price for iron ore was $78.30/wmt fob in H1 FY2020, up only 1pc compared to $77.74/wmt fob in the first six-months in 2019.

 

BHP’s metallurgical coal production was down 2pc to 20mn mt (36mn mt) in H1 FY2020. However, guidance for the 2020 financial year remains unchanged at between 41-45mn mt, with a stronger second half performance projected.

 

The average realized price for met coal was down 22pc to $140.94/mt in H1 2020, compared to $179.53/mt in the first six-months in 2019. 

 

Hard coking coal with coke strength after reaction (CSR) of 35 and above realized an average price of $154.01/mt, decreasing by 24pc from $201.33/mt in the first six months of 2019. Weak coking coal with CSR below 35, realized average an average price of $101.06/mt in H1 FY2020, 20pc lower than the average price of $126.46/mt in the first six months in 2019. 

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