BHP cuts copper output outlook over Chile protests, environmental concerns -Breaking
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© Reuters. FILE PHOTO – A toy character and an imitation of a mineral are shown in the background of this illustration from November 19, 2021. REUTERS/Dado Ruvic/Illustration2/2
(Reuters) – BHP Group (NYSE) Ltd lowered its annual production outlook Thursday due to protests from workers and environmentalists, along with labour shortages resulting in rising COVID-19.
Chile, world’s largest copper producer, sued BHP and other miners in April over environmental harms it caused to the Atacama saltflats.
Along with roadblockades and threats of work disruption over worker contract violations, Escondida’s surging COVID-19 infection rate has impacted production at the project. It houses the largest copper deposit in the world.
According to the miner’s third-quarter production report, “Our Chilean assets were subjected to an operating environment that was difficult in the March 2022 quarter”
Escondida copper production will now be expected at between 1,000 million tonnes (kt.) and 1,030 Kt by 2022. It is down slightly from its earlier range of 1,020 to 1,080 Kt. There has been a slight decrease in total copper output to 1,570 kt or 1,620 kt.
So far in this financial year the miner has produced 1,112 tonnes of copper, a decrease of 10% over last year. Third quarter output of iron ore from Western Australia was not as high as last year’s and it missed consensus estimates.
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