BHP Group, the world’s largest mining company, produced 69.7 million tons of iron ore in the second quarter, marking a 5% increase compared with the same period last year, and reaffirmed its full-year production guidance.
Copper output fell by 4% in the three months ended at the end of December, reaching 490,500 tons. The red metal is viewed as a key driver of the company’s future growth, alongside potash.
Realized iron ore prices edged up slightly to $84.71 per ton. BHP has been engaged in a pricing dispute with China, the largest consumer of this key steelmaking input, for several months.
Price negotiations with China
The state-owned China Mineral Resources Group (CMRG) has sought to curb steel mills’ purchases from BHP as part of a broader effort to strengthen the country’s bargaining power and limit the pricing power of mining companies.
The Melbourne-based miner said it responded by offering greater flexibility in shipments, but noted that it had “seen some impact” on iron ore selling prices.
Other major iron ore exporters, including Brazil’s Vale, Rio Tinto, and Fortescue, will also have to negotiate their prices with China Mineral Resources Group.
