Photo by: Bloomberg
PERTH (miningweekly.com) – Diversified giant BHP Billiton has reported production records across ten operations, and three commodities, including iron-ore, during its half-year ended December.
“Strong operating performance across our diversified portfolio in the December half-year delivered a 10% increase in production and volumes are expected to grow by 16% over the two years to the end of the 2015 financial year,” CEO Andrew Mackenzie said on Wednesday.
He noted that iron-ore and metallurgical coal were particularly strong during the period under review, and were well positioned to achieve its full-year guidance.
Iron-ore production in the six months reached 97.8-million tonnes, up 19% on the previous corresponding period. The company’s Western Australian operations achieved record production of 108-million tonnes, despite weather-related downtime and an increase in planned maintenance during the three months to December.
BHP is expecting to complete the ramp-up phase at its Jimblebar mine, in the Pilbara, to 35-million tonnes a year, by the end of 2015.
The miner also reported that its Queensland coal operations achieved record production during the half-year under review, as several productivity initiatives increased yearly production to 68-million tonnes.
“Our productivity agenda is in full swing and we expect to carry strong momentum in the second half of the financial year,” Mackenzie added.
Metallurgical coal production for the half-year increased by 22% to a record 22-million tonnes. Energy coal production reached 37-million tonnes. Record production from the mines in New South Wales, in Australia, and Cerrejon, in Colombia, was offset by the impact of industrial action, lower yields and adverse weather conditions at the Becsa operation, in South Africa.
Meanwhile, petroleum liquids production was also up 9% on the previous corresponding period, reaching 50-million barrels of oil equivalent in the half-year ended December, underpinned by a 72% increase at the onshore US operations.
Total petroleum production for the period under review was down 1% on the previous corresponding period to 120.4-million barrels of oil equivalent.
The mining giant further reported a 6% increase in copper production for the half year, with production increasing to 843 000 t, while zinc production was up 18% on the previous corresponding period, to 61 410 t.
“During the period, six of our major projects delivered first production and our ten remaining projects, which are largely low risk, brownfield expansions, are tracking on plan,” Mackenzie reported.
He pointed out that by maintaining strict financial discipline and increasing internal competition for capital, BHP intended to further differentiate itself by achieving a superior rate of return on incremental investments.
“We also remain committed to actively managing our portfolio for value. This strategy leaves us well positioned to deliver a substantial increase in free cash flow and higher returns to shareholders.”