BHP Billiton Ltd (BHP: Quote,BBL: Quote,BLT.L,BHP.AX) Wednesday said iron ore production in the second quarter advanced 3 percent from last year, and forecast a compound annual growth rate of 10 percent over the two years to the end of fiscal 2014. The miner also reiterated its guidance for the three key divisions of iron ore, copper and petroleum.
”The release of latent capacity at a number of our highest margin businesses and strong growth across our broader portfolio is expected to deliver a compound annual growth rate of 10% in copper equivalent terms over the two years to the end of the 2014 financial year,” the mining giant said in a statement.
In the December quarter, BHP’s iron ore production totaled 42.19 million metric tonnes compared to 41.09 million metric tonnes in the year-ago period. For the first half of the year, output advanced 2 percent to 81.96 million metric tonnes.
According to BHP, the Western Australia Iron Ore, or WAIO, delivered a twelfth consecutive December half-year production and sales record.
BHP said its outlook for WAIO business is supported by an expected 5 percent increase in production in fiscal 2013, with the guidance unchanged at 183 million tonnes on a 100 percent basis.
Copper output increased 5 percent from last year to 295.2 million metric tonnes and was up 8 percent from the prior quarter, as output at Escondida in Chile benefited from the transition to higher grade ore feed and the completion of large scale maintenance programs that increased concentrator throughput. Total Escondida copper production is on track to increase by 20 percent in fiscal 2013.
Total petroleum production was 59.9 million barrels of oil equivalent, up 3 percent from last year. The full-year guidance remains unchanged at 240 million barrels of oil equivalent.
Crude oil, condensate and natural gas liquids volumes increased 5 percent, amid continued growth in Onshore US liquids production, development drilling at Shenzi, and a full quarter contribution from the Atlantis and Mad Dog facilities in the U.S.
Natural gas production rose 2 percent from last year, but dropped 6 percent sequentially due to seasonal reduction in demand for Bass Strait natural gas.
Aluminium production dropped 5 percent from last year, but increased 10 percent from the September quarter as Hillside production in South Africa returned to full technical capacity, ahead of schedule.
Nickel production dropped 10 percent from last year and 6 percent from the previous quarter, as strong operating performance at Cerro Matoso in Colombia was more than offset by planned maintenance at the Nickel West Kalgoorlie smelter and Kwinana refinery in Australia.
Peer Rio Tinto Plc (RTNTF.PK,RIO: Quote,RIO.L,RTPPF.PK) last week reported a slight increase in iron ore production in the fourth quarter, while production of mined copper, Bauxite and alumina grew at double digit rates. Looking ahead, the company said the business continues to perform well, even though the markets remain volatile.
BHP.AX is currently up 1.3 percent at A$37.07.
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by RTT Staff Writer
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