BHP Group reports solid gains in coal and copper output in Q2, raises full-year cost expectations

The largest miner by market value globally, BHP Group Ltd, reported a solid increase in coal and copper output during its fiscal second quarter and a more modest increase in iron ore production.

BHP’s production of metallurgical coal surged 10% year-on-year to 7.0 million metric tons during the three months through December, while copper production rose 16% year-on-year to 424,300 tons.

Iron ore production grew 1% year-on-year to 66.9 million tons during the quarter.

“WA [Western Australia] Iron Ore delivered record production for the half year through strong supply chain performance, supported by the ongoing ramp-up at South Flank,” Chief Executive Officer Mike Henry, said in a press release.

“Copper production at Escondida rose despite road blockades in Chile in the December quarter and the Spence Growth Option continued to ramp up, while Olympic Dam’s ongoing smelter performance saw near-record material processing and record gold production,” the CEO added.

Yet, the company said full-year unit cost guidance for its metallurgical and thermal coal operations had been raised, mostly due to significant wet weather and inflationary pressures.

The shares of BHP Group Ltd (BHP) closed 0.44% ($0.30) higher at $68.06 in New York on Wednesday, with the mining company’s total market cap now standing at $174.01 billion.

The shares of BHP Group Ltd went up 2.82% in 2022.