Australian resources firm BHP has kept its iron ore production guidance for the 2022-23 fiscal year to 30 June unchanged with sustained output.

 

It produced 72.1mn t of iron ore during July-September, up by 2.2pc on a year earlier, reflecting a firm supply chain performance and reduced Covid-19 related impact, which was partially offset by the influence of wet weather.

 

Sales were 70.3mn t for the latest quarter, down by 7.6pc from a year earlier on a 100pc basis. BHP's target for the South Flank mine in the Pilbara region of Western Australia to reach full production capacity of 80mn t/yr remains on track. Variability of the ore grade is expected as the mine progresses through the close to surface material, although this is expected to stabilise, the company said.

 

Lump accounted for 31pc of BHP's sales during the quarter, while fines accounted for 69pc. This compared with a lump proportion of 28pc in the same period last year and a fines share of 72pc.

 

The Argus 62pc iron ore lump premium was at 22.7￠/dry metric tonne (dmt) unit on 18 October, the highest since June this year. BHP has narrowed discounts for its October monthly contracts.

 

The Argus ICX 62pc iron ore fines index cfr Qingdao was 93.95/dmt on 18 October, up by $0.50/dmt from a day earlier when the index was at the lowest level since November 2021. Argusmedia