Pandemic-related absences and social unrest in Chile hit BHP’s copper and nickel output by 10% and 13%, respectively, as the company warned the labor restrictions would drag on. until the end of 2022.
The decline in copper production in the nine months to March 31 was due to major Covid-19 outbreaks at production facilities in Chile, as well as sugar and sugar blocks. social unrest in the countrythe world’s largest mining company said in its quarterly update on Thursday.
BHP also blamed repairs to its South Australian mines for the drop in copper production. Nickel production in Western Australia has fallen by 13% due to the absence of coronavirus and Lack of laborthe company said.
BHP has reduced its maximum projected copper production for the year ending June 30 to 140,000 tonnes for the year and projected nickel production to 10,000 tonnes. However, the company managed to keep its iron ore output, its most important commoditystable for the nine months to March 31.
It performs better than rival Rio Tinto, reported on Wednesday Iron ore output fell 8% in the third quarter from the same period last year due to coronavirus-related labor shortages and supply chain issues.
In particular, Rio Tinto has struggled to open an iron ore mine in Western Australia’s Pilbara region, where pandemic-related supply issues have made it difficult to ensure equipment quality.
BHP iron ore and metallurgical coal production remained on target, with iron ore production unchanged over the nine-month period and metallurgical coal down 2%.
“While we expect conditions to improve throughout 2023, we anticipate skills shortages and overall labor market tightening in Australia and Chile to continue in the near term. coming,” said BHP CEO Mike Henry.
Glyn Lawcock, head of resources research at Barrenjoey, said BHP’s results were “not as bad” as Rio Tinto’s. He said the Melbourne-based miner had disappointed expectations in copper, meeting forecasts for iron ore and beating them with metallurgical coal. He added that later production had benefited from better-than-expected summer weather in north-east Australia.
Lawcock said yes growing concern in Chile about an “anti-mining fundamental current” that seems to be emerging in government.
“They are talking, at the extreme, nationalization of property. They are also talking about higher royalties and taking water rights from the mining industry,” he said, adding that this could limit the global copper supply. Chile produces about 30% of the world’s copper.
He said BHP is better insulated from the government’s threat to strip mining companies of water rights because the company has invested in coastal desalination plants to reduce its dependence on water. inland underground.
