- Mining giant BHP said 'strong' performance across its portfolio offset the impacts of planned maintenance, natural field decline and wet weather in Australia and the company maintained its iron ore, petroleum and metallurgical coal guidance.

The company said, however, its previous guidance for copper production in the range of 1.705m-to-1.82m tonnes was 'under review' following the temporary suspension of operations at Antamina due to the Covid-19 pandemic.

BHP also said energy coal production guidance was under review with Cerrejon placed on temporary care and maintenance.

For the quarter ended March, petroleum production fell 13% to 25m barrels of oil equivalent (MMboe) on-year, copper rose 1%, iron ore was up 7% and energy and metallurgical coal fell 14% and 7% respectively.

Looking ahead, the company said that while demand in China had strengthened in recent weeks, it expected other major economies, including the US, Europe and India, to contract sharply in the June 2020 quarter.

'Chinese domestic industrial activity has been improving, spurred on by supportive credit and fiscal policy. The major risk to maintaining that positive trajectory is the possibility of a second wave of infections emerging. That is among the range of pathways that we consider and it is the key caveat for each of our regional outlooks,' the company said.

'Indications are that the US and Europe will see a more protracted period of activity disruption, a deeper labour market impact and a flatter trajectory for the recovery once it arrives. India, Japan and South Korea will see negative impacts on industrial activity from their own suppression efforts and those of their trading partner,' it added.

At 8:15am: [LON:BHP] Bhp Group PLC share price was -61.2p at 1249.2p

Story provided by