22nd Oct 2014 05:24
MELBOURNE (Alliance News) - Mining giant BHP Billiton Ltd Tuesday reported a 17% year-over-year increase in iron ore production for the first quarter, and a 1% growth from the fourth quarter. Production of metallurgical coal grew 25%.
"Robust operating performance across our diversified portfolio in the September 2014 quarter delivered a nine percent increase in production with records achieved for eight operations and four commodities," Chief Executive Andrew Mackenzie said.
Mackenzie said the company remains on track to generate production growth of 16% over the two years to the end of the 2015 financial year.
"With our focus now on maximising the value of existing infrastructure, we plan to reduce costs and invest judiciously in very low capital cost debottlenecking initiatives," added Mackenzie.
The world's largest mining company reported a 17% increase in iron ore production to 57.09 million tons from the year-ago period. Production also inched up 1% from the prior quarter. Iron ore is the main raw material used for steel production.
The company said its iron ore production is forecast to increase by 11% in the 2015 financial year to 225 million tons, consistent with prior guidance.
BHP's first-quarter production of metallurgical coal, which is also used in steel making, grew 25% from last year to 12.77 million tons, and increased 7% from last quarter as Queensland Coal reported record production and sales.
Meanwhile, energy coal production declined 9% from the prior-year quarter to 17.84 million tons.
BHP's total petroleum production for the quarter grew 7% to 67.4 million barrels of oil equivalent or boe.
The company's alumina production edged down 1% to 1.24 million tons from last year, while aluminum production for the quarter plunged 16% to 261 thousand tons.
Copper production for the first quarter decreased 3% to 389,400 tons, while nickel production declined 12% to 35,700 tons from last year.
Copyright RTT News/dpa-AFX
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