In its H2 2020 operational review just released, BHP says its total iron ore production increased significantly, an impressive result given COVID-19 challenges. Guidance for the 2021 financial year has also increased to between 245 and 255 Mt, reflecting the restart of Samarco in December 2020 (between 1 and 2 Mt).

Western Australia Iron Ore (WAIO) production increased by 6% to a six month record of 128 Mt (145 Mt on a 100% basis), “reflecting record production at Jimblebar and strong performance across the supply chain, with significant improvements in car dumper productivity and reliability. This was partially offset by weather impacts and the planned Mining Area C and South Flank major tie-in activity.” Production in the March 2021 quarter is also expected to be impacted by planned Ore Handling Plant maintenance across the mines. Guidance for the 2021 financial year remains unchanged at between 244 and 253 Mt (276 and 286 Mt on a 100% basis).

In Brazil, Samarco (BHP 50%/Vale 50%) re-commenced iron ore pellet production in December 2020 after meeting the licencing requirements to restart operations at the Germano complex in Minas Gerais and Ubu complex in Espírito Santo. Samarco’s operations were suspended following the failure of the Fundão dam on 5 November 2015. Samarco’s gradual restart of operations incorporates one concentrator at the Germano complex and a pelletising plant at Ubu, as well as a new system of tailings disposal combining a confined pit and tailings filtering system for dry stacking. Production for the 2021 financial year is expected to be between 1 and 2 Mt. Production capacity of approximately 8 Mt/y (100% basis) is expected once ramped up.

Samarco states: “With the approval of the Corrective Operating License (LOC) in October 2019, we had in hand all the environmental permits necessary to resume our activities. However, we chose to await the implementation of a filtration system, concluded in December 2020, to allow the dry stacking of 80% of the tailings generated. The remaining tailings will be placed in a confined pit, providing a safe and natural contention of the material. Our operational restart will be gradual, initially at 26% of our production capacity, with the reactivation of one of the three concentrators in the Germano Complex in Mariana (MG), one of our four pellet plants at the Ubu Unit in Anchieta (ES) and one of our three pipelines. We are totally committed to seeking solutions which introduce innovations and improvements in our projects and operations, also strengthening our industry and contributing to a different and more sustainable mining activity.”