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Highlights
- Production Growth: Iron ore output rose 1% year-on-year to 73.1 million tonnes in Q2, surpassing market estimates of 72.8 million tonnes.
- South Flank Boost: The fully ramped-up South Flank project and supply chain improvements drove record volumes from the Central Pilbara hub.
- Forecast Maintained: Full-year production guidance remains at 282–294 Mt, with expectations to reach the higher end of the range.
BHP Group Ltd (ASX:BHP) has reported a 1% increase in second-quarter iron ore production, driven by enhanced operational efficiency and the full ramp-up of its South Flank project in Western Australia. The world's largest listed miner delivered 73.1 million tonnes (Mt) of iron ore in the quarter ending December 31, surpassing the Visible Alpha consensus estimate of 72.8 Mt and outperforming the 72.7 Mt produced during the same period last year.
Record Output from Central Pilbara Hub
BHP attributed the growth to supply chain optimizations and increased productivity across its Western Australia operations. The Central Pilbara hub, which includes South Flank and Mining Area C, delivered record volumes during the quarter.
The South Flank project, fully completed in the previous financial year, has played a key role in improving efficiency, enabling a 9% boost in productivity. This milestone has allowed the miner to transport iron ore more efficiently and at greater volumes.
Production Guidance on Track
BHP maintained its annual production forecast for Western Australia iron ore operations at 282–294 Mt. The company noted, however, that it expects output to trend toward the upper end of this range, reflecting continued operational improvements.
