Australian miner BHP Billiton has announced its production results for the first nine months ended March 31 of the financial year 2019-20. Accordingly, the company achieved a record iron ore output of 181 million mt in the given period from its Western Australian iron ore operations, rising by three percent when compared to the same period of the financial year 2018-19. In the third quarter of the same financial year, on the other hand, iron ore production in Western Australia amounted to 60 million mt, up by seven percent year on year.
The company has not revised its iron ore production guidance for the financial year 2019-20, which remains between 242 million mt and 253 million mt.
In the first nine months, BHP Billiton's metallurgical coal production decreased by three percent to 30 million mt, while it fell by seven percent to nine million mt in the third quarter, both year on year. BHP Billiton’s metallurgical coal production guidance for the financial year 2019-20 has also remained unchanged at 41-45 million mt.
BHP expects that steel production ex-China could decrease by a double-digit percentage in the 2020 calendar year. According to BHP, steelmakers from a variety of regions, including Europe, the Americas, India and Japan, have announced or signaled full shutdowns or production reductions in the June quarter and this reflects both logistical difficulties which the coronavirus outbreak caused and collapsing demand in downstream industries such as automotive. BHP said that some of its customers are choosing to reduce production at their blast furnaces in the face of this demand shock.
The company stated that its financial position is strong and its business is resilient owing to its low-cost operations, and that it expects to continue to generate solid cash flow.
BHP said that it has flexibility in its capital and exploration expenditure and that it is reviewing its guidance for the financial year 2020-21, which will be lower than the current guidance of around US$8 billion.