BHP's iron ore unit cost climbs 13% on year in FY22

For its 2022 fiscal year that ended on June 30, BHP has posted an on-year gain of 13% in iron ore unit cost to $16.81/tonne for its iron ore operations in Western Australia, driven mainly by COVID-19-related costs and inflationary pressures including diesel and electricity, according to its latest financial report released on August 16.

Last year's unit cost for the world's third-largest iron ore miner reflected costs associated with COVID-19, which were reported as an exceptional item in the prior year, the report stated. The actual iron ore unit cost was also lower than BHP's guidance of $17.5-18.5/t, Mysteel Global notes. BHP's unit cost