Posted on 21 Jul 2023
Australian miner BHP reported Thursday one-digit growth in its copper and nickel production during the 2023 financial year ended on 30 June, Kallanish notes.
Total copper production increased 9% year-on-year to 1.71 million tonnes, with the bulk of it produced at the company’s Escondida mine in Chile. The operation mined 1.05m t of copper in the FY, which is up 5% compared to FY 2022 mostly due to higher concentrator feed grade.
BHP expects Escondida’s output to increase to 1.08-1.18m t in the 2024 financial year, on the back of an expected improvement in concentrator feed grade and an increase in concentrator throughput.
The Copper South Australia operation posted the most growth – a 68% increase – at 232,400 t. It was the first full year of production from Olympic Dam, following the acquisition of OZ Minerals. Olympic Dam delivered record BHP copper production because of continued strong concentrator and smelter performance, after a major maintenance campaign in the previous year, the company explains.
Meanwhile, production at the Nickel West operation in Australia increased by 4% y-o-y to 80,000 t. BHP attributes the performance to an increased proportion of concentrate and matte products and inventory drawdowns, partially offset by the slower-than-planned ramp-up of the refinery. A heavy rain event at the Mt Keith operations in early April also impacted mine progression.
In the next financial year, nickel production is estimated at 77,000-87,000 t, weighted to the second half of the year due to planned refinery maintenance in the first half.
The miner said its average realised copper price dropped 12% in FY 2023 to $3.65/pound, while its nickel metal prices increased 3% to average $23,275/t.
Source:Kallanish
