BHP’s latest quarterly report suggests the mining giant is bracing for the West Australian border to come down on February 5, warning it may dent production at its all-important iron ore operations.
The company reported on Wednesday that iron ore output in the December quarter was up slightly, crediting factors including the ramp up of its massive new South Flank mine in WA, saying the rise came despite border restrictions-related rail labour shortages.
For BHP, the border reopening will mean access to more labour, but the miner warns it “may introduce some short-term disruption to the operating environment as the COVID-19 pandemic evolves in the State”.
Reporting a drop in metallurgical coal output, the company downgraded its full-year target, blaming La Niña-related wet weather coupled with virus related labour shortages at its Queensland mines.
“Following the recent easing of Queensland’s border restrictions, COVID-19 related absenteeism has increased and remains a risk for the remainder of the year,” BHP said.
It comes as Alec O’Connell, the head of elite Perth boys’ school Scotch College, reportedly called on Premier Mark McGowan to push back the reopening date to give schools more time to prepare, including allowing parents more time to get their kids vaccinated.
Mr O’Connell also chairs the Association of Heads of Independent Schools of Australia WA branch.
Repeatedly asked at recent press conferences if February 5 still stood as the reopening date – based on modelling of the Delta variant – Mr McGowan has insisted it won’t change.
When he first announced the date, the Labor leader said it would allow WA to reopen “on its own terms”, suggesting there may have been pressure from the federal government.
Meanwhile, the Mining and Energy Union has accused mining companies of dropping the ball on COVID-19 control measures like social distancing and hygiene.
Queensland district president Stephen Smyth claimed they had not updated their risk management plans to take into account Omicron and had abandoned most of the measures required earlier in the pandemic.
“It’s become very clear that mining companies can’t rely only oxjmtzywn vaccination as a silver bullet to keep workplaces safe,” Mr Smyth said.
“Coal mines need a full range of COVID safety measures including screening through rapid testing, social distancing, provision of N95 masks and deep cleaning.”
But the union does not support employer vaccination mandates in the absence of public health orders and is challenging BHP’s requirement for all staff to show proof of vaccination by January 31.
A decision in the Fair Work Commission is expected this week.
BHP was sought for comment on the union’s remarks.
