Multinational resources group BHP said on Tuesday that it was expecting a reduction in iron ore production of approximately six to eight million tonnes after conducting a preliminary estimate of the impact of tropical cyclone Veronica in Western Australia.
As a result, BHP said its 2019 financial year production and unit cost guidance were currently under review.
Cyclone Veronica is part of a one-two strike of tropical cyclones on Australia that began last week, and it has continued to move along the coast of Western Australia in low-lying areas between the Port Hedland and Pretty Pool with flooding and destructive winds where BHP mines iron ore.
The miner said BHP Port and Rail Operations in Port Hedland were now ramping up after being suspended due to the cyclone.
“While initial inspections show no major damage to our operations, isolated flooding both on site and sections of the rail leading into the port has limited train movements,” it said.
“Consequently, the port is currently operating at reduced rates and not expected to return to full capacity until later this month.”
BHP said final production impacts and revised production and unit cost guidance will be disclosed once they are finalised. The miner was engaging with customers and intends to meet its contractual commitments.
– African News Agency