BHP Pilbara strike: Industrial action at Port Hedland mars Big Australian’s record iron ore production result
Strike action by BHP workers in the Pilbara today — the first in more than three decades— has marred revelations that the Big Australian has pulled in its biggest-ever haul of iron ore.
Strike action by BHP workers in the Pilbara on Thursday — the first in almost three decades — has marred revelations that the Big Australian has pulled in its biggest-ever haul of iron ore.
Just hours before a coalition of unions from the Australian Workers Union, Australian Manufacturing Workers Union, and Electrical Trades Union are set to walk off the job, the world’s biggest miner reported in a market update that it had increased production of the steel-making commodity to 265 million tonnes in the 12 months to the end of June.
That was up one per cent from the previous financial year’s 263mt. The average realised price achieved was up 3 per cent to $US84.56.
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By continuing you agree to our Terms and Privacy Policy.The miner also showed few signs of any major hit to sales of iron ore into China despite a months-long standoff with the Middle Kingdom.
State-backed China Mineral Resources Group flexed its muscle late last year when it banned steel mills from purchasing BHP’s Jimblebar Fines blend as it sought better terms, including price discounts and settling more sales in Chinese renminbi rather than US dollars.
A deal was finally struck in April. Despite the blockade, sales hits 288.1mt, slightly up on the previous year’s 287.6mt.
BHP is targeting production of between 260mt and 272mt this financial year.
The result came the same day that hundreds of BHP’s Port Hedland Bulk Export Terminal workers are due to down tools for eight hours from 2pm on Thursday after months of enterprise bargaining negotiations between the three unions and the miner failed to yield a deal.
The intervention of the Fair Work Commission earlier this week also failed to prevent the strike — the first large-scale industrial action taken in WA’s critical iron ore industry for 26 years.
But in better news, and despite the upheaval of oil markets following the outbreak of war in the Middle East earlier this year, BHP said costs for a tonne of iron ore remained with guidance of between $US18.25 and $US19.75.
Cost for its copper division came in at he bottom end of guidance.
Like its rival Rio Tinto, BHP is leaning into data centre-fuelled demand for copper and revealed it had produced about 2 million tonnes of the red metal for a second consecutive year.
Delivering his first set of production results, newly minted chief executive Brandon Craig said BHP had finished the year strongly and had set several performance records.
“For the second consecutive year, we produced around 2mt of copper and delivered record iron ore production, demonstrating the power of a disciplined operating system and world-class assets,” Mr Craig said.
“We achieved this against a backdrop of stronger realised prices for both copper and iron ore, with copper prices around 35 per cent higher than a year ago.
“Cost control was particularly strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions.”
