BHP Billiton (BHP) boosted sales of iron ore by more than 16% in the March quarter to record levels, according to the company’s latest quarterly production and sales report issued this morning.
The company said sales jumped to 64.2 million tonnes in the three months to March, up sharply from 55.02 million tonnes in the March, 2014 quarter.
That took total iron ore sales for the first nine months of the 2014-15 financial year to 190.35 million tonnes, 17% more than the 162.38 million tonnes produced in the same period of 2013-14.
Production in the March quarter was also 5% up on the figure for the December quarter of 62.84 million tonnes.
BHP’s effort was much stronger than rival Rio Tinto (RIO) whose sales in the March quarter were up 8% from the same quarter of last year, but down 12% on the December quarter as bad weather and transport problems cut shipments from the port of Dampier, which is further down the Pilbara coast from BHP’s main export operation at Port Hedland.
The production and sales figures show BHP had to dip into its stocks of ore to run exports at their record level in the quarter.
Production in the quarter was 17% higher than the same quarter a year ago – 64.3 million tonnes against 55.8 million tonnes.
For the nine months to March, total production rose 16.7% to 188.12 million tonnes against 162.7 million tonnes in the first nine months of 2013-14.
In fact both iron ore production and sales were better than expected, and the strong performance has seen BHP decide to cut further spending on the division.
BHP 1Y – BHP iron ore expansion ahead of schedule
BHP had been working to ‘debottleneck’ the inner harbour at Port Headland but said its existing infrastructure continued to “exceed expectations” and so further spending could be deferred.
And production guidance for the division was lifted from 225 million tonnes to 230 million tonnes, against the 204 million tonnes for 2013-14.
Iron ore prices were slightly lower on Wednesday morning at $US51.04 a tonne in China.
BHP has cut its full year guidance for its copper division with one of three mills breaking down at the Olympic Dam mine in February.
BHP will now produce 1.7 million tonnes of copper this financial year rather than the original estimate 1.8 million.
And like Rio Tinto, BHP performed strongly in the coking coal mines of Queensland and has lifted full year guidance from 45 million tonnes to 47 million tonnes.
BHP’s petroleum production was lower than expected, but full year guidance has been retained.
