Cyclones disrupt BHP iron ore sales in January-March

Market: Metals
17/04/25

Australian mineral producer BHP's iron ore sales fell by 3.9pc on the year in January-March, despite total production remaining largely flat, because of months of severe weather challenges in Australia.

BHP iron ore output for the 2025 financial year will sit in the lower end of its 255mn-265.5mn t guidance, it said in February. BHP had expected to operate in the upper end of its guidance range before multiple cyclones hit Western Australia (WA) in January-February.

The decline in BHP's production guidance comes entirely from its WA operations. The company increased its Brazilian Samarco iron ore production guidance closer to the upper end of its 5mn-5.5mn t range. BHP produced 1.6mn t of ore at Samarco in January-March, up by 39pc on the year. The company — which runs Samarco as a joint venture with Brazilian metal firm Vale — re-opened a concentration plant at the mine in December 2024. Total production at Samarco will reach 16mn t/yr by the end of the 2025 financial year, the company said on 17 April.

But production declines at the company's WA mines were limited in January-March, decreasing by just 0.3pc on the year. This was partly because of the ramp up of production at BHP's South Flank mine in July-September 2024.

BHP's Samarco mine also buoyed its total iron ore sales in January-March. Exports from the site rose by 15pc on the year, partially offsetting a 4.3pc decline in shipments from the company's larger WA operations.

Other producers also faced weather disruptions over January-March. Australian producer Mineral Resources revised down its 2025 iron ore production guidance by up to 2.4mn t after Cyclone Sean. Rio Tinto also lost 13mn t of shipments and will likely only reach the lower end of its production guidance range of 323mn-338mn t in 2025.

By Avinash Govind

BHP iron ore quarterly results
	Jan-Mar '25	Oct-Dec '24	Jan-March '24	q-o-q % ±	y-o-y % ±

Proudction (mn t)
Western Australia	60.1	64.8	60.3	-7.1	-0.3
Samarco	1.6	1.5	1.2	11.1	39.3
Total	61.8	66.2	61.5	-6.7	0.5
Sales (mn t)
Western Australia	59.2	64.3	61.9	-7.9	-4.3
Samarco	1.4	1.5	1.3	-4.2	14.9
Total	60.7	65.8	63.1	-7.9	-3.9
Source: BHP

Argus' iron ore fines 62pc Fe price ($/t)

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