BHP records biggest year of iron ore exports as prices boom
Mining giant BHP has shipped a record-breaking amount of iron ore from its Australian mines over the past year, just as the price of the steel-making raw material trades at an all-time high.
The nation’s biggest mining company revealed it had produced 73.7 million tonnes of iron ore in the three months to June 30 â€" about 4 per cent less than the same time last year, as labour shortages, COVID-19 travel restrictions and bad weather hit its operations. But the volume brought BHP’s full-year iron ore output to within the top end of its target range at 284.1 million tonnes.
BHP and other Australian miners have received a massive boost over the past year as the price of iron ore, the nation’s biggest export, hit a record $US230 a tonne.Credit:Bloomberg
The result was in line with the company’s target of between 276 and 286 million tonnes for the year.
“BHP is in great shape,†chief executive Mike Henry said. “Our operations are performing well, we continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the mega-trends of decarbonisation, electrification and population growth.â€
BHP and other Australian miners have received a massive boost over the past year as the price of iron ore, the nation’s biggest export, hit a record $US230 a tonne on the back of aggressive, infrastructure-focused stimulus programs in China fuelling record demand for steel. Meanwhile, global seaborne supply of the commodity has been constrained due to prolonged disruptions dragging on production volumes at Vale’s iron ore mines in Brazil.
Benchmark iron ore prices remain strong this week at more than $US215 a tonne.
However, resources analysts now believe Chinese efforts to curb steel output are likely to take hold in coming months and could push down the price of iron ore, at the same time as supply from Brazil begins to lift.
“We believe iron ore is approaching an inflection point,†analysts at investment bank UBS said.
Business reporter for The Age and Sydney Morning Herald.
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