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BHP iron ore production down 5% due to maintenance work and labor shortages

On Tuesday, BHP Group reported a nearly 5% drop in first-quarter iron ore production due to maintenance work at the Jimblebar mine and rail labor shortages caused by covid-19 border restrictions.

BHP iron ore production down 5% due to maintenance work and labor shortages

However, the world's largest miner did not change its annual output outlook, unlike rival Rio Tinto, which lowered its shipment forecast last week due to the tight labor market.

The crisis had prompted Rio and BHP to ask train drivers to work more hours, as tight border restrictions affected the flow of workers living in cities and flying to remote mining sites.

There are also demand concerns stemming from the debt crisis in the Chinese real estate market, which halved iron ore prices from a record high in May, along with Beijing's tighter emissions controls.

BHP shares have lost nearly a quarter since the company posted its best annual results in nearly a decade in August, and it also revealed plans to shelve its double-listed structure and exit oil as part of the move to "forward-looking commodities." ”.

Stocks fell 1.5% in a weaker overall market on Tuesday.

On a 100% basis, iron ore production from Western Australia fell to 70.6 million tons (mt) in the three months to September, from 74 mt a year ago. However, this was higher than RBC Capital Markets' estimate of 68 mt.

Production in the oil business planned to be acquired by Woodside Petroleum increased 3% to 27.5 million barrels of oil equivalent.

Metallurgical coal production fell 9% to 8.9 mt, while thermal coal output increased 17% to 4.2 mt. An acute coal shortage on a global scale, including in China, has caused a rise in commodity prices and power outages.

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