BHP cuts iron ore forecasts after Australia cyclone

BHP cut iron ore output forecasts on Wednesday, reflecting the impact of tropical cyclone Veronica in Western Australia, which also hit production at sector peer Rio Tinto.

The world's biggest miner cut its forecast to 265m - 270m tonnes, from 273m – 283m tonnes. Iron ore output for the three months to end-March fell 5% to 64m tonnes.

Full-year production costs were increased to less than $15 a tonne, from previous guidance of less than $14 a tonne, due to lower volumes and increased remediation costs.

BHP reported an 8% fall in copper production quarter on quarter to 420,000 tonnes, mainly due to lower output at the Escondida mine in Chile.

However, annual copper production guidance was maintained at 1.65m – 1.74m tonnes.

Rio Tinto on Tuesday reported a 14% fall in quarterly iron ore shipments and cut its 2019 shipments estimate due to the cyclone and a fire at its Port Kembla port facility.