Cyclone cuts BHP’s Australia iron ore production
The world’s biggest miner BHP said Tuesday it was ramping up its Western Australia operations following a tropical cyclone that hit iron ore output levels.
The Anglo-Australian mining firm said Tropical Cyclone Veronica, which stuck the region last month, had so far cut production by approximately six to eight million tonnes.
There was “no major damage” to the port and rail operations in the mining centre of Port Hedland, but isolated flooding had limited train movements.
“Consequently, the port is currently operating at reduced rates and not expected to return to full capacity until later this month,” the company said in a statement.
BHP said it was reviewing its production and unit cost guidance for the 2019 financial year.
Mining giant Rio Tinto said Monday its iron ore production from the region had also been curtailed and this year’s total output was now expected to be between around 338 and 350 million tonnes.
Iron ore prices have been on the rise of late, as Brazilian miner Vale trimmed production estimates and amid concerns about the impact of Cyclone Veronica.