BHP lowered full-year copper and nickel production guidance as it battled Covid-related staff absenteeism and political unrest in Chile.
Third-quarter copper production fell 6% year on year to around 370,000 tonnes, while nickel fell 8% to 18,700 tonnes.
BHP now expects total copper output between 1.57 million – 1.62 million tonnes, from previous guidance of 1.59m – 1.76m.
Annual Nickel production was forecast to be 80,000 – 85,000 tonnes, down from 85,000 – 95,000 tonnes due to Covid-19 related labour constraints.
However, the world’s biggest miner reported a 1% annual rise in third quarter iron ore production, and maintained annual guidance at 249 million – 259 million tonnes, despite a 10% quarter-on-quarter fall in output.
“While we expect conditions to improve during the course of the 2023 calendar year, we anticipate the skills shortages and overall labour market tightness in Australia and Chile to continue in the period ahead,” BHP chief executive Mike Henry said.
“Market volatility and inflationary pressures have increased further as a result of the Russian invasion of Ukraine.”
