BHP’s Sept quarter suffers from maintenance activities & labour shortage

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BHP’s Sept quarter suffers from maintenance activities & labour shortage

Iron ore mine
Image source: Iron ore mine | Source: © Intst | Megapixl.com

Highlights

  • BHP Group (ASX:BHP) has released its September quarterly ending report on Tuesday.
  • The group has posted near-decade high annual results in August 2021.
  • The miner’s iron ore production from the fully owned Western Australia assets tumbled to 70.6Mt in the last quarter.

Australia’s one of the leading iron ore mining company, BHP Group (ASX:BHP) has released its September quarterly ending report on Tuesday. The miner has posted around 5% drop in iron ore production in the quarter due to the maintenance work at its Jimblebar mine and shortage of rail lobours amid COVID-19 travel restrictions.

However, the miner has not squeezed its annual production outlook like its rivals Rio Tinto (ASX:RIO) that has reduced its forecast for shipments amid a tight labour market.

Acute labour shortage

The acute labour shortage has pushed miners to ask train drivers to work for few more hours apart from their routine job timings as the region is facing challenged related to skilled labours due to the COVID-19 travel restrictions.

The world's largest miner has posted a near-decade high annual results in August 2021 however, rising environmental concerns in China and debt crisis in the Chinese property market has reduced the demand for Australian iron ore to nearly half relative to the record peak level of May.

BHP’s production

The miner’s iron ore production from the fully owned Western Australia assets tumbled to 70.6Mt in the last quarter relative to 74Mt in the previous corresponding year.

Quarterly performance

Source: Copyright © 2021 Kalkine Media

The production at BHP’s petroleum business that was acquired by Woodside Petroleum (ASX:WPL) rose 3% to 27.5Mboe.

The output for metallurgical coal tumbled around 9% to 8.9Mt while the production of thermal coal jumped by17% to 4.2Mt.

Bottom Line

Miners across Australia are facing an acute shortage of labours due to COVID-19 led travel restrictions. BHP has posted a near 5% drop in its iron ore production during the September-ending quarter.

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