BHP operational review for the half year ended 31 December 2023

BHP Group (ASX: $BHP) has released its operational review for the half year ended 31 December 2023. The company reported a solid first half with a 5% increase in WA Iron Ore production, a 7% rise in first half copper production, and a 36% increase in NSW Energy Coal production. However, BMA faced challenges due to significant planned maintenance and low starting inventories. The company is deeply saddened by a fatal incident at BMA's Saraji mine and is committed to learning from the tragedy.

Executive commentary on operational performance

Mike Henry, BHP Chief Executive Officer, expressed his satisfaction with the company's operational performance during the first half of the financial year. He highlighted the positive production growth in key areas such as WA Iron Ore, copper, and energy coal. However, he also acknowledged the tough six months faced by BMA and the tragic incident at Saraji mine. The company remains focused on continuous improvement and learning from the challenges encountered.

Summary of operational review and outlook

BHP's operational review for the half year ended 31 December 2023 reflects a strong performance in key production areas, with production guidance remaining unchanged for FY24. The company's growth agenda is progressing with the ongoing construction of the Jansen mine in Canada and the sanction of Jansen Stage 2. BHP is also investing in higher quality metallurgical coal with the planned divestment of BMA's Blackwater and Daunia mines. The company is committed to mitigating the impacts of the sharp fall in nickel prices and remains focused on enhancing the quality of its portfolio. BHP's financial results for the half year ended 31 December 2023 are expected to be released on 20 February 2024.