BHP Billiton (BHP) reported record figures for four commodities, including iron ore and coal, two of its staple products, and 12 of its global mining empire, according to the June quarter and financial year operations report released this morning.
Like rivals, Rio Tinto (RIO) and Fortescue (FMG), BHP reported record iron ore production and sales figures for its huge Pilbara mining complex.
BHP chief executive Andrew Mackenzie said production across the group was up 9% for the 2013-14 financial year, compared to 2012-13.
And he sees improvement in the coming financial year.
"We expect to maintain strong momentum and remain on track to generate Group production growth of 16 per cent over the two years to the end of the 2015 financial year.
"In Petroleum, we are investing in our highest-return acreage while a broader improvement in productivity is expected to underpin stronger iron ore, copper and metallurgical coal volumes.
"We will remain focused on value over volume as we prioritise our brownfield development options and consider the next phase of portfolio simplification," he said in this morning’s statement.
BHP 1Y – BHP iron ore production continues to surge
The star was again the company’s iron ore division, which produced a total of 204 million tonnes during the year, while the Queensland-based coking (metallurgical) coal division produced 45 million tonnes.
Both commodities suffered price falls in the year, especially in the six months to June 30, but this didn’t stop BHP from ramping up production of the two.
And BHP expects to lift iron ore production by a further 11% in the current financial year to 225 million tonnes.
WA iron ore production reached its 14th record level and was running at an annual rate of 217 million tonnes in the three months to June as the company shipped more to China (as did Rio and Fortescue).
June quarter production was up 17% to 56.6 million tonnes, from 47.7 million in the June quarter of 2013. That was a faster rate of increase than the 11% reported last week by Rio.
The increase came from higher than planned production levels at the new Jimblebar mine in the Pilbara, which opened early and under budget in April of this year.
The company said copper production at Escondida in Chile rose to 1.7 million tonnes, petroleum production rose 4% to a record 246 million barrels of oil equivalent (with liquids production up 18% in the US tight shale fields onshore USA and from the huge Atlantis field in the Gulf of Mexico.
And the company said it completed six major projects in the year (Jimblebar in WA was one), with the new Caval Ridge coal mine in Queensland finished ahead of schedule and under budget in the June quarter.
BHP warned shareholders that underlying earnings before interest and tax in the six months ended June 30 will include one-time charges totalling as much as $US1.3 billion due to mine rehabilitation and the cost of jobs cuts. There was no word on the fate of the proposed spin off of nickel assets in WA.
BHP closed at $38.51 on Tuesday. The company says its annual results will be out on August 19.
