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The reactions to low nickel and lithium prices, coupled with Alcoa’s announcement last week that it would shut its Kwinana alumina refinery at the cost of about 1000 jobs, are likely to take some pressure off the tight WA labour market that has pushed the cost of mining projects up significantly.
BHP’s cash cow iron ore operation in WA’s Pilbara region had a 3 per cent dip in output in the December quarter compared to a year ago, but this was more than offset by a 21 per cent uptick in the average realised price, the company said.
The fall in production was attributed to the rollout of new railway signalling equipment and the ongoing ramp-up of two new mines, South Flank and Area C.
Copper output from BHP’s mines in Chile and South Australia for the six months to December rose 3 per cent compared to a year ago, but production of metallurgical coal from Queensland slumped 18 per cent due to significant maintenance work.
Henry said it was a solid six months of operations during which BHP also incorporated Oz Minerals’ assets into its SA copper business and committed to a $US4.9 billion ($7.5 billion) expansion of its Canadian potash project.
