BHP Group reported a 15.5% year-on-year decline in metallurgical coal production during the first three quarters of the current financial year.

The company's metallurgical coal output totaled 17.35 million tonnes from July 2023 to March 2024, down from 20.54 million tonnes in the same period a year earlier, BHP said in its latest operational report.

The decrease was attributed to several factors, including planned maintenance, extended longwall move at the Broadmeadow mine, and increased stripping activities to improve supply chain stability for opencast operations to restore depleted inventory positions arising from extended weather impacts and labour constraints over recent years.

Production was also impacted by a 24-hour operational pause at the BMA operations following the tragic fatality of a team member in January 2024, and a further 3.5-day suspension at Saraji mine.

In the third quarter of FY2024 (January-March 2024), BHP's metallurgical coal output rose 6% quarter on quarter to 6 million tonnes, but was still 13% lower year on year. The increase was driven by higher stripping rates and productivity, despite unfavorable weather conditions.

However, the impact of two tropical cyclones in the region and the temporary shutdown at Saraji mine following the incident have affected BHP's full-year production guidance.

The company now expects its metallurgical coal output to be in the range of 21.5-22.5 million tonnes (43-45 million tonnes, 100% basis), down from the previous guidance of 23-25 million tonnes (46-50 million tonnes, 100% basis).

In contrast, BHP's iron ore production remained relatively stable, reaching 61.5 million tonnes in the third quarter, up 3% year on year but down 7% quarter on quarter. The company maintained its full-year iron ore production target of 254-265 million tonnes.

(Writing by yan.sun  Editing by Harry Huo)
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