Declining grades at aging Chilean mines combined with severe weather! BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) Q3 copper output "plunges" but full-year guidance remains unchanged

Mining giant BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs (BHP.US) said copper output fell sharply as its main mines in Chile were affected by weather and declining ore grades, but the company maintained its full-year copper production guidance unchanged. In its quarterly report on Tuesday, the company said copper output plunged 19% year-on-year in the three months to September. It said the decline reflected "planned lower ore grades and scheduled maintenance, as well as temporary production interruptions caused by severe weather in Chile." Major mining companies are facing declining ore grades at aging mines. At the same time, finding new copper deposits is becoming increasingly difficult. This comes as copper prices are in a bull market, with rapid AI development and the continued push for renewable energy and electrification driving strong demand growth. BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs CEO Brandon Craig said: "Global markets remain volatile, with geopolitical tensions, trade uncertainty and elevated energy and transport costs continuing to create headwinds across the industry." He added that this was a period of "heavy maintenance activity." According to BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs's quarterly report, the company mined 400,700 tonnes of copper in the quarter, while output of another core commodityiron oreremained stable at 66.5 million tonnes. The company kept its copper production guidance unchanged. Meanwhile, its full-year forecast for iron ore output, a steelmaking raw material, was also maintained at 260 million to 272 million tonnes. The world's largest mining company is spending heavily just to sustain output at its flagship copper mine in Chile, while also seeking to develop new resources elsewhere in South America. Last week, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs successfully avoided a strike at its flagship Escondida mine. BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs also plans to increase iron ore output in Western Australia. Despite having cut 300 jobs in the related operations, Brandon Craig still wants the company to achieve its target of 305 million tonnes of iron ore per year in the near future. In other operations, BHP Group Ltd Sponsored American Depositary Receipt Repr 2 Shs continues to advance its Jansen potash project in Canada. The project had previously suffered cost overruns and delays, but the company is still proceeding as planned and expects to produce the first ore from this key fertilizer mineral next year.