BHP Group PLC on Tuesday reported a mostly dim performance in output for its recently ended financial year, with declines in copper, iron ore and metallurgical coal.

For the year ended June 30, copper production dropped 4.3% to 1.57 million tonnes from 1.64 million tonnes, as a result of a higher than expected concentrator feed grade decline at the Escondida mine in Chile, as well as a reduced workforce due to Covid-19. There was also a fall in output from Olympic Dam due to a major smelter maintenance campaign.

For the 2023 financial year, BHP is guiding for copper output to come between 1.64 million tonnes and 1.83 million tonnes.

Iron ore production for the year dipped 0.1% to 253.2 million tonnes from 253.5 million tonnes the prior year, with output from Western Australia Iron Ore output remaining in line with the prior period, as favourable weather and a strong supply chain was offset by maintenance on the Jimblebar mine, and labour constraints.

For the year ended June 2023, BHP expects iron ore production to be between 249 million tonnes and 260 million tonnes.

Metallurgical coal output declined 8.8% to 29.1 million tonnes from 31.9 million tonnes the prior year, as a result of significantly unfavourable wet weather, in addition to labour issues more than offsetting record production from the Broadmeadow mine. BHP has guided for metallurgical coal production for the current financial year to be between 29 million tonnes and 32 million tonnes.

Energy coal from the New South Wales Energy Coal project meanwhile also suffered a fall, down 4.2% at 13.7 million tonnes from 14.3 million tonnes, as a result of lower volumes on Covid-related labour constraints and wet weather. Looking ahead, energy coal output for the 2023 financial year is expected to range from 13 million tonnes to 15 million tonnes.

‘Broader market volatility continues and we expect the lag effect of inflationary pressures to continue through the 2023 financial year, along with labour market tightness and supply chain constraints. Over the year ahead, China is expected to contribute positively to growth as stimulus policies take effect, however, the continuing conflict in the Ukraine, the unfolding energy crisis in Europe and policy tightening globally is expected to result in an overall slowing of global growth,’ said Chief Executive Officer Mike Henry.

Shares in BHP were down 0.9% at A$36.63 on Tuesday in Sydney.

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