PERTH (miningweekly.com) – Diversified giant BHP on Tuesday maintained its production expectations for the 2020 financial year, with CEO Mike Henry saying that production would be slightly higher than the 2019 financial year.

“We delivered solid operational performance across the portfolio in the first half of the 2020 financial year, offsetting the expected impacts of planned maintenance and natural field decline.

“Production and cost guidance is unchanged, and we remain on track to deliver slightly higher production than last year. Our six major development projects are progressing well, and we continue to advance our exploration programmes in petroleum and copper.”

BHP on Tuesday reported that iron-ore production for the December quarter was down 1% on the previous quarter, but up 2% in the six months to December, to 60-million and 121-million tonnes, respectively.

The lower volumes during the quarter ended December resulted from the completion of a major car dumper maintenance at the Pilbara operations during October last year.

For the 2020 financial year, BHP’s production target for iron-ore has remained unchanged at between 242-million and 253-million tonnes.

Meanwhile, copper production for the quarter was up by 6% on the previous quarter and by 7% in the half-year, to 455 000 t and 885 000 t respectively, with strong concentrator throughput at the Escondida operation, in Chile, more than offsetting the impact from social unrest in the region.

Higher production at the Olympic Dam operation, in South Australia, was also achieved following planned preparatory work in the previous quarter, related to refinery crane replacement.

For the full year, BHP has predicted copper production to reach between 1.7-million and 1.82-million tonnes.

Petroleum production for the quarter was down 4% on the previous quarter, and 9% in the half-year, to 28-million and 57-million barrels of oil equivalent respectively.

Crude oil, condensate and natural gas liquid production declined by 9% in the first half, due to Tropical Storm Barry in the Gulf of Mexico, as well as field decline across the portfolio, while natural gas production was down 8% reflecting a decrease in barrels at Trinidad and Tobago, maintenance at the North West Shelf, and reduced domestic gas sales in Western Australia.

For the full year, BHP has maintained its production guidance of between 110-million and 116-million barrels oil equivalent for its petroleum division.

Meanwhile, metallurgical coal production was up 17% in the quarter, to 11-million tonnes, and down 2% in the half-year, to 20-million tonnes, while energy coal production was up 8% in the quarter to six-million tonnes, and down 12% in the half-year, to 12-million tonnes.

Higher volumes of metallurgical coal production followed on from the completion of significant planned wash plant maintenance in the previous quarter at the Queensland operation, while higher volumes of energy coal production at the New South Wales operations resulted from higher average strip ratios in the previous quarter, and higher volumes at Cerrejon, owing to adverse weather conditions in the September quarter.

BHP has targeted between 41-million and 45-million tonnes of metallurgical coal production for the full 2020, and between 24-million and 26-million tonnes of energy coal.

Meanwhile, nickel production for the quarter declined by 37%, to 13 700 t, and by 11% in the half-year, to 35 300 t, as maintenance was undertaken at the Kwinana refiner and the Kalgoorlie smelter, as well as at the concentrators.

For the full 2020, BHP is expecting nickel production to remain in line with the 2019 financial year.