Insights

Why the BHP (ASX:BHP) share price is trading lower today

The BHP Group Ltd (ASX:BHP) share price is dropping on Thursday despite achieving a milestone at the South Flank mine…
The post Why the BHP (ASX:BHP) share price is trading lower today appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price is on course to record another decline today. This is despite the mining giant announcing the commencement of production at a new mine.

At the time of writing, the BHP share price is down over 1% to $48.18.

Why is the BHP share price trading lower today?

Today’s weakness in the BHP share price appears to have been driven by a softening iron ore price.

According to CommSec, the spot benchmark iron ore price fell by 3.7% or US$8.30 a tonne overnight to US$215.45 a tonne.

This is also weighing on the Rio Tinto Limited (ASX: RIO) share price. Its shares are down 1% at the time of writing.

What did BHP announce?

Failing to keep the BHP share price in positive territory today was the announcement of the achievement of first ore at the US$3.6 billion South Flank mine in the central Pilbara, Western Australia.

According to the release, South Flank is an 80 Mtpa sustaining mine, and will be the most technically advanced high quality iron ore mine in Western Australia.

Together with the existing Mining Area C, it will form the largest operating iron ore hub in the world. This hub is expected to produce 145 million tonnes of iron ore each year.

BHP’s President of Minerals Australia, Edgar Basto, commented: “South Flank is Australia’s largest new iron ore mine in over 50 years and is on time and on budget. South Flank’s high quality ore will increase WAIO’s average iron ore grade from 61 to 62 per cent, and the overall proportion of lump from 25 to 30-33 per cent.”

“South Flank’s ore will supply global steel markets for the next 25 years, helping to build electricity, transport and urban infrastructure across the globe. And its high quality ore will have an important role in helping BHP’s customers lower their greenhouse gas emissions,” he added.

Western Australia’s Premier, Mark McGowan, was pleased to see the project achieve its first production.

He said: “The South Flank project is an example of my government’s commitment to working with industry to take advantage of the international market and business development trends to create Western Australian jobs. I congratulate BHP on the first production of ore and look forward to this project continuing to provide jobs for Western Australians and delivering considerable economic benefit for our state.”

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

Why the Fortescue and BHP share prices are sinking this week

ASX 200 sinks, EML plunges, Appen soars

Should ASX iron ore producers worry as China plans to up its own production?

These iron ore miners are outperforming the BHP (ASX:BHP) share price in 2021
CSL (ASX:CSL) share price backtracks despite renewed optimism

The post Why the BHP (ASX:BHP) share price is trading lower today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!