BHP falls short of expected profit, warns of slowing growth outside China

BHP Group on Tuesday said it expects most major world economies except China to bear the brunt of a coronavirus-led downturn this year, reporting a 4% drop in annual profit that missed analysts’ estimates.

While miners have seen green shoots emerge from an economic pickup in the world’s top metals user, as well as a boost in infrastructure spending, the risk of new virus outbreaks around the world threatens to undermine growth, BHP said.

The warning came as BHP reported underlying profit attributable from continuing operations for the year ended June 30 that fell to $9.06 billion – below estimates of $9.42 billion, according to Refinitiv IBES data.

“With the exception of China, the world’s major economies will contract during the 2020 calendar year as a result of the covid-19 pandemic,” Chief Executive Mike Henry said in a statement.

Henry added that the potential for fresh waves of coronavirus infections in key markets was weighing on the demand outlook for 2021 at the world’s largest listed miner.

“Not too many surprises in there,” said portfolio manager Andy Forster of Argo Investments in Sydney. “Maybe a touch under expected, and the dividend a bit below.”

Shares fell by as much as 1.3% before trimming the drop to 0.3% at A$39.75, by 0203 GMT, compared with a 1% rise in the broader index.

The profit miss was in contrast to rival Rio Tinto , which last month rode its iron ore-rich portfolio to beat profit estimates and touted “a very steep V-shaped” recovery in China.

It declared a final dividend of 55 cents per share, down from 78 cents a year earlier, but still in line with its payout ratio.

BHP also announced asset divestments and executive leadership changes – that will see top management evenly split by gender – as Henry, who officially took the reins in January, puts his stamp on the business.

The miner said it is looking at options including a demerger or sale of thermal coal assets, as it favours energy-rich metallurgical coal in its portfolio given a lower-carbon future.

These include its Australian Mount Arthur operations, 80% of its BHP Mitsui Coal joint venture, and one-third of the Cerrejón mine in Colombia. Japanese trading house Mitsui had no immediate comment.

It also said it was looking to sell off its Bass Strait oil and gas stake, though that was not down to any environmental agenda, Henry told an analyst call.

He said BHP was bullish on oil because it has profitable prospects for at least the next decade and is open to acquisitions near existing assets.

Austenitic Manganese Steel Mill Liners

When it comes to austenitc manganese steel mill liners, H&G Mill Liners had focused this material for long time. Our austenitc manganese steel mill liners span life more than other foundries mill liners.

This material used for grid liners, and generally smaller mills. Its great advantage is that it work hardens under stress, yet the substrate remains tough and can withstand extreme impacting without fracture. Its primary disadvantage is that it spreads with impact, so solid liners begin to squeeze together and become extremely difficult to remove, and can damage a mill shell if the stress is allowed to build up to an extreme level.

Austenitic manganese steel’s ability to work harden from impact loading along with its exceptional toughness make it the best wear material choice for many demanding applications.The hardness of manganese steel in the solution annealed and water quenched condition is normally around 220 HB. It is possible to strain harden this material to approximately 500 HB. In order to achieve this high hardness level, the impact loading must be high while the material wearing away from gouging abrasion is limited. It is typical in crushing applications were the main wear mechanism is gouging abrasion that the manganese steel will harden to some intermediate level, typically 350-450 HB.

Our Austenitic Manganese Steel Chemical Composition

Name	Spec Available（%）
Name	C	Si	Mn	Cr	Mo	Cu	P	S
High Manganese Liner (Mn14)	0.9-1.5	0.3-1.0	11-14	0-2.5	0-0.5	≤0.05	≤0.06	≤0.06
Super Manganese Liner (Mn18)	1.0-1.5	0.3-1.0	16-19	0-2.5	0-0.5	≤0.05	≤0.06	≤0.06

Our Austenitic Manganese Steel Mechanical Properties & Microstructure

Name	Surface（HB）	Ak（J/cm2）	Microstructure
High Manganese Liner (Mn14)	≤240	≥100	A+C
Super Manganese Liner (Mn18)	≤260	≥150	A+C
C -Carbide A- Austenite

Low Carbon Chrome Moly Steel Mill Liners

When it comes to low carbon chrome moly steel mill liners, H&G Mill Liners had focused to cast this material for our customer. Our low carbon chrome moly steel mill liners span life more than other foundries mill liners.

This material also called AS2074 L2B steel.This steel is generally used for mill liners (AG,SAG and Ball) prior to the movement to higher carbon content steels. It has excellent wear characteristics with some impact resistance, generally now used for discharge grates where slightly better impact resistance is required compared to the higher carbon chrome moly steels or for thinner section liners.

Chrome Moly Steel Chemical Composition

Material Grade	C	Si	Mn	P	S	Cr	Mo
AS2074 L2B	0.55-0.65	<0.75	0.50-1.00	<0.06	<0.06	0.80-1.50	0.20-0.40
AS 2074 L2C	0.70-0.90	<0.75	0.50-1.20	<0.06	<0.06	1.30-2.40	0.20-0.40

Features

Used for AG/SAG and ball mills ;
Excellent wear characteristics and some impact resistance ;
Metallographic structure of AS2074 L2B Steel is Pearlitic;
Good for discharge grates;
The hardness of AS2074 L2B is HB310-HB380.

High Carbon Chrome Moly Steel Mill Liners

When it comes to high carbon chrome moly steel mill liners, H&G Mill Liners had focused to cast this material for our customer. Our high carbon chrome moly steel mill liners span life more than other foundries mill liners.

This material also called AS2074 L2C steel.This steel is now considered the main material used for SAG mill liners. There are a number of variations with either different carbon or chrome contents. The variations tend to have a bearing on the size of the liner and its section thickness. There is ongoing development within this area as the size of the liners are outstripping the properties provided by the standard high chrome moly steels.

Features

The material of SAG mill liners are low C or high C Cr-Mo Alloy steel,which depends on the specific working condition of the SAG mill;
Chromium and molybdenum both individually increase the hardenability of low alloy steel. Important synergistic effects, not yet fully defined, can also occur when Cr and Mo are used in place of single elements;
Metallographic structure of AS2074 L2C Steel is Pearlitic;
Chromium brings resistance to corrosion and oxidation, high temperature strength and abrasion resistance. Molybdenum helps maintain a specified hardenability and increases high temperature tensile and creep strengths. These grades are generally heat-treated to specified properties;
This material hardness: 325 to 380 BHN

Chrome Moly White Irons Mill Liners

When it comes to chrome moly white iron mill liners, H&G Mill Liners had focused this material for long time. Our chrome moly white iron mill liners span life more than other foundries mill liners.

This cast material is considered to be the ultimate developed and used to date for abrasion resistance in Milling. It is commonly used in cement mills and some of the largest Ball Mills in the world and where performance has not been bettered to date.

The Features

600 to 700 BHN white iron
Large ball mills
Malleable Iron: cast as white iron,then malleabilised, or heat treated, to impart ductility. Consists of tempered graphite in an a-ferrite or pearlite
matrix
Common in cement mills
Used for abrasion resistance

Nihard Iron Mill Liners

When it comes to Ni-hard iron mill liners, H&G Mill Liners had focused to cast this material for our customer. Our Ni-hard iron mill liners span life more than other foundries mill liners.

Ni-Hard Cast Iron is well known for its durability and quality. The materials made of up Ni-Hard are wear resistant and have extended life as compared to other cast iron or mild steel. Nickel content increases with section size or cooling time and prevents pearlitic transformation of the cast iron.

This material The use of this type of material generally began with Rod Mills and Ball Mills, where impacts were considered low enough for this brittle yet highly abrasive resistant wear material to perform well. However, it is now considered obsolete in light of the use of high chrome irons and chrome moly white iron.

Features

Chromium usually included between 1.4-4% to ensure carbon phase solidifies to carbide, not graphite. (Counteracts the graphitizing effect of Ni) ;
Abrasion resistance (usually desired property of this material) increases with carbon content, but toughness decreases;
Consists of martensite matrix, with nickel alloyed at 3-5% in order to suppress transformation of austenite to pearlite;
Abrasion resistance (usually desired property of this material) increases with carbon content, but toughness decreases ;
Various grades class I type A abrasion resistant; class I type B toughness;
Applications: Because of low cost, used primarily in mining applications as ball mill liners and grinding balls;
This material hardness: 550 BHN

Rubber Mill Liners

When it comes to rubber mill liners, H&G Mill Liners had focused to cast this material for our customer. We cooperation with our friend foundries to supply high quality polyurethane rubber mill liners.

The polyurethane is a polymer composed of organic units joined by carbamate (urethane) links. While most polyurethanes are thermosetting polymers that do not melt when heated, thermoplastic polyurethanes are also available.Polyurethane polymers are traditionally and most commonly formed by reacting a di- or triisocyanate with a polyol. Since polyurethanes contain two types of monomers, which polymerise one after the other, they are classed as alternating copolymers. Both the isocyanates and polyols used to make polyurethanes contain, on average, two or more functional groups per molecule.

Qiming Mill Liner offers a complete polyurethane mill liners solution including lifter bars, plates and grates. Alloys and profiles are selected based on your specific application and operating conditions. Different lining materials such as rubber, metallic and polyurethane mill liners can be combined in the same mill to achieve optimal performance. Design and material selection is executed using High Fidelity Simulation (HFS) and experience from thousands of real-world cases. Qiming Mill Liners invented the polyurethane mill liners concept over 30 years ago, and our linings are still the world’s most widely-used today. The reason is simple, we offer our customers solutions that improve grinding efficiency and lead to increased profitability.

Advantages

Polyurethane rubber mill liners’s working life 5-10 times than normal metal mill liners in some work conditions;
Polyurethane rubber mill liners weight less than metal mill liners, which easy to carry;
Because the no-load load is reduced, the power saving effect is obvious. Under the normal load condition, the new polyurethane liner can save 15% -30% of power;
15% reduction in ball mill media consumption;
Ball mill working noise is greatly reduced

@Nick Sun [email protected]

Post time: Sep-04-2020