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17 Apr 2019
BHP cuts iron ore production outlook, will it help boost iron-ore prices, Aussie?
BHP Group, the world’s biggest miner, announced on Wednesday that it slashed its forecast for iron ore output after a tropical Australian cyclone, Reuters reports.
This comes after its rival Rio Tinto also cut its production outlook. Rio Tinto suffered operational issues in the first quarter, including a fire at its Cape Lambert operations.
Additional Details:
“BHP, which put its fiscal 2019 iron ore production under review following the cyclone, lowered its forecast to 265 million-270 million tonnes, from 273 million-283 million tonnes.
Iron ore output for the three months to end-March fell 5 percent to 64 million tonnes, down from 67 million tonnes a year ago.
BHP also increased its full-year production costs to less than $15 a tonne, from less than $14 a tonne previously, due to lower volumes and increased remediation costs.”