Storms, bushfires hit production at BHP | Fin24
  • Load Shedding Schedules

    Find information for Johannesburg, Durban, Cape Town and other cities.

  • Eskom Debt

    'Hard to believe' tweets minister, after Zim at last pays off debt to power utility.

  • Corruption Watch

    Corruption 'all but collapsing' public healthcare, warns watchdog amid coronavirus chaos.


Storms, bushfires hit production at BHP

Jan 21 2020 20:22
Phumi Ramalepe
A strike over pay has halted production at the wor

A strike over pay has halted production at the world's largest copper mine, Escondida, operated by BHP Billiton in the Antofagasta region, Chile. (File, AFP)

Related Articles

BHP approached Anglo American chief Mark Cutifani for CEO role, say insiders

BHP Group at all time highs as resources rally

World’s biggest miner sees coal's era ending in shift to the battery age

BHP Billiton to fight Australian class action over Samarco dam disaster


Multi-mineral mining company BHP saw a decline in production at some of its mines, which it has attributed to forces of nature including bushfires and tropical storms.

However, it added, production and unit cost guidance remained unchanged for the 2020 financial year.

According to the Melbourne-headquartered company's trading statement for the half year ended 31 December 2019 – released on Tuesday morning – the production of energy coal saw a 12% decline.

New South Wales Energy Coal saw an 11% drop in production due to a change in product strategy, BHP added.

"Smoke from regional bushfires and dust have reduced air quality at our operations, which has impacted December 2019 production. We are monitoring the situation and if air quality continues to deteriorate then operations could be constrained further in the second half of the year," said the statement.

Crude oil, condensate and natural gas liquids production declined by 9% in the Gulf of Mexico due to the impact of Tropical Storm Barry. The company further reported a 9% decline in the production of petroleum.

However, news was more positive for copper: the third phase of the drilling program at Oak Dam in South Australia is in progress and is expected to be completed in the June 2020 quarter, BHP said.

BPH’s share price went down by 1.98% during the course of Tuesday, and had reached R341.68 by 4pm. "Just judging by the share price reaction, [the] share price is not down as much as the market, but it is down roughly in line with the market [which is] down 1.2%. That would imply that in broad terms, the announcement is within expectation," said Jean Pierre Verster, the CEO of Protea Capital Management. 

mike henry  |  mining


Company Snapshot

Voting Booth

Do you support a reduction in the public sector wage bill?

Previous results · Suggest a vote