BHP Billiton’s iron ore output falls 6pc

24 October 2016

BHP Billiton, the world’s biggest mining company, reported first-quarter iron ore production fell 6pc as it carries out a rail maintenance program, has lower volumes from its Yandi mine and with an operation in Brazil halted.

Production was 57.6m metric tons in the three months ended 30 September, Melbourne-based BHP said Wednesday in a statement.

About 200,000 metric tons of forecast full-year copper output is under review after a two-week power outage in South Australia, which halted some production at the Olympic Dam mine, BHP said.

The producer currently estimates copper output in the year to June 30 of 1.66m tons, it said.

“We have seen early signs of markets rebalancing,” chief executive Andrew Mackenzie said.

“Fundamentals suggest both oil and gas markets will improve over the next 12 to 18 months, and while iron ore and metallurgical coal prices have rallied this year, BHP expects supply to grow more quickly than demand in the near term.

“Together, the combination of steadier markets, continued capital discipline, improved productivity and increased volumes in copper, iron ore and metallurgical coal should further support strong free cash flow generation this financial year.”

Petroleum output fell 15pc to 55m barrels of oil equivalent following the deferral of some activities in BHP’s US onshore unit amid weaker prices, BHP said. That beat a 53.5m barrel median estimate among six analysts surveyed by Bloomberg.

Source – Telegraph