BHP cuts copper output on Olympic Dam, other outages
TECHNICAL issues at BHP’s Olympic Dam operation in SA and a fire at another plant in Chile have resulted in a three per cent cut to its forecast annual copper production.
TECHNICAL issues at BHP’s Olympic Dam operation in SA and a fire at another plant in Chile have resulted in a three per cent cut to its forecast annual copper production.
Copper output at the Olympic Dam mine, 560km north of Adelaide, decreased by 21 per cent to 33,000 tonnes as a result the unplanned acid plant outage since August.
The incident at the sulphuric acid plant followed the failure of several boiler tubes, which are now being replaced.
Sulphuric acid produced in the acid plant is used to extract the residual uranium from the copper rich concentrate.
“Surface operations remain suspended as remediation works continue on the gas converter, sulphur burner and waste heat boiler in the acid plant,” BHP said in its quarterly operational update to investors on Wednesday.
“Surface operations are expected to recommence at the end of October 2018 and ramp up to full capacity during November 2018,” it said.
As a result of the outage, production guidance for Olympic Dam for the 2019 financial year has been reduced to between 170,000 tonnes and 180,000 tonnes - from between 200,000 tonnes and 220,000 tonnes.
Underground operations remain unaffected with the progression to the higher ore grade Southern Mine Area continuing, the company said.
It is understood the company has also brought forward other planned maintenance shutdowns as a result of the outage.
BHP recently completed a $350 million upgrade of the smelter and is celebrating 30 years of copper mining at Olympic Dam this year.
The mine site directly employs 3500 people in SA and supports thousands more jobs through its contractors and suppliers.
BHP said copper output was also impacted by a fire at another plant at its Spence mine in Chile.
BHP’s total copper production came in flat for the September quarter at 409,000 tonnes.
Expected production for the FY19 year is now down about 50,000 tonnes to between 1.62 million and 1.705 million tonnes.
Overall BHP met analyst expectations during the first quarter across its iron ore, copper, coal and petroleum businesses.
BHP chief Andrew Mackenzie said the group was “on track” to meet guidance for the 2019
financial year across the rest of its commodities.
“In petroleum, we have extended our exploration success and encountered hydrocarbons in three wells. The Onshore US sale process is progressing to plan and is expected to be completed by the end of October 2018.”