According to an Argus Media report, BHP is expected to make up for lost iron ore shipments from Port Hedland for the rest of the year and stay on track to hit its July 2018-June 2019 guidance, following the derailment of one of its trains earlier this month.
The train derailed after leaving without its driver, and subsequently the company was unable to deliver ore from its Pilbara iron ore mines to its port at Port Hedland. BHP was able to resume partial deliveries on November 10 and has been able to ramp up rail services over the past week despite some safety concerns related to the trains.
BHP's shipping data indicates that its loadings for November 6-19 this year are down by 22% on the same period in October and by 30% on the same period in November last year.
While this may seem like a large fall, it is only over a two-week period and BHP should be able to make up for this over the next six to eight weeks, assuming there are no other technical issues and the weather remains benign, according to analysts.
BHP, the world’s largest mining company, urged peers to create an independent international body in charge of overseeing the construction, integrity and operations of tailings dams, which storage mining waste, following the second collapse of a dam in Brazil in the past three years.
Portside discounts for Fortescue Metals' 56.5pc Fe super-special fines (SSF) have dropped below 20pc to the Argus 62pc PCX portside index on 15 February, the narrowest in recent months, and may contract further as supply keeps high-grade prices under pressure.
Iron ore mining giant Vale (NYSE:VALE) issued a statement Friday advising that there was a fire in one of the transfer houses of the belt conveyor system at its distribution center in Malaysia.
Iron ore producer Fortescue Metals Group (ASX:FMG) revealed Friday that one of its massive driverless trucks collided with another at one of its Western Australia mines earlier this week. There were no injuries.
Eight employees of the Brazilian mining giant Vale (NYSE:VALE) were arrested on Friday as part of an ongoing criminal investigation into the deadly dam disaster in the town of Brumadinho, which killed at least 166 with over a hundred still missing.
Iron ore prices reached an almost two-year high on Tuesday, following January’s fatal tailings dam breach in Brazil at Vale’s Córrego do Feijão mine. Iron ore was at $86.65/dry ton on Feb. 4, up 14% since the dam breach and the highest since March 2017, according to S&P Global Platts.