BHP production soars in west, copper slides

BHP Billiton iron ore production has surged to a record level in the nation’s west, helping the resources titan maintain its forecast for the full year.

BHP Billiton chief executive Andrew Mackenzie.

BHP Billiton iron ore production has surged to a record level in the nation’s west, helping the resources titan maintain its forecast for the full year.

But its copper volume has fallen during a quarter blighted by power blackouts that disrupted production at the Olympic Dam mine in South Australia.

In a mixed report card on first-half production, BHP also revealed petroleum output had fallen 15 per cent with cutbacks on US shale developments.

The company said it produced 60 million tonnes of iron ore at its Western Australian operations in the three months to December, taking half-year output to a record 118 million tonnes. It also said a two-year rail maintenance program would likely be completed next quarter, almost six months ahead of schedule.

The Melbourne-based miner has maintained its forecast to produce 265 million to 275 million tonnes at the WA iron ore operation.

“We have performed well during a period of higher prices, with record iron ore volumes achieved (at that division),” chief executive Andrew Mackenzie said on Wednesday. Metallurgical coal production rose 2 per cent during the three months to December, keeping the company in line to achieve a full-year target of 44 million tonnes.

BHP left intact its full-year production target of 200 million to 210 million barrels of oil equivalent for the petroleum business, despite a 32 per cent decline during the quarter in US onshore output after delaying the development of shale assets.

Conventional production, however, rose 1 per cent to 32 million barrels and Mr Mackenzie affirmed the group’s expansion plans for that business.

The company said it would now spend $US820 million on exploration during the full year, compared with a previous forecast $US700 million.

The miner cut its copper output forecast for the full year by 2 per cent to reflect lower volumes from its Olympic Dam mine.

BHP said it was not yet in a position to provide an update on the ongoing financial impact from the Samarco dam disaster in Brazil.

It will detail its half-year results on February 21.

The company’s shares climbed 3.3 per cent on the revelation, closing 88c higher yesterday at $27.89.

AAP