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BHP 1H iron ore production up 25pc

Nicholas Grove  |  18 Jan 2012Text size  Decrease  Increase  |  

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Nicholas Grove is a Morningstar journalist.

 

BHP Billiton (BHP) on Wednesday said its West Australian iron ore production for the half-year to 31 December 2011 rose 25 per cent on the prior corresponding period to a record 178 million tonnes (mt).

"Consistently strong operating performance, the ramp up of Ore Handling Plant 3 at Yandi, dual tracking of the company's rail infrastructure and additional ship loading capacity at Port Hedland all contributed to the record performance," the world's biggest miner said.

Iron ore production for the December quarter was up 22 per cent year on year to 41 mt, while production at the company's Samarco operation in Brazil was unchanged for both the quarter and the half.

Among the other commodities, petroleum production for the half-year was up 36 per cent on the same half in 2010 to 109.4 million barrels of oil equivalent (mmboe), following the acquisition of the Fayetteville and Petrohawk operations in the US and strong performances from existing assets, BHP said.

In the base metals division, total copper production for the half was down 16 per cent year on year. Lead production fell 9 per cent, zinc production fell 33 per cent, while silver and uranium production fell 15 per cent and 3 per cent, respectively.

In a statement, BHP said average mill throughput per day from the Escondida mine in Chile steadily increased in the December quarter, as operations recovered from industrial action that affected production in the prior quarter.

In line with prior guidance, BHP forecast production from Escondida to be marginally lower in the 2012 financial year, with volumes weighted to the second half.

Diamond production for the half fell 32 per cent year on year, and BHP said it expects production from the EKATI mine in Canada to remain constrained in the medium term as the operations extract lower-grade material.

Nickel production fell 10 per cent year on year in the December half, BHP said, with operating margins from its Nickel West operations remaining sensitive to weak nickel prices and continued strength in the Australian dollar.

Alumina production for the half rose 2 per cent year on year, while aluminium production was unchanged, the company said.

Manganese ore and manganese alloy production for the half was down 3 per cent and 1 per cent, respectively, BHP said.

Metallurgical coal production for the half fell 2 per cent year on year, BHP said. Volumes from Queensland Coal (Australia) for the December quarter remained below capacity, which the company said was a result of stoppages associated with the ongoing labour negotiations and wet weather.

Production from the Illawarra Coal (Australia) operations increased in the half year following successful longwall moves in the June 2011 quarter, the company said.

Energy coal production for the half rose 5 per cent year on year, after production records were achieved at New South Wales Energy Coal and Cerrejon Coal, BHP said.