BHP Billiton Ltd (BHP, BBL, BLT.L, BHP.AX) on Wednesday reported a 6 percent increase in iron ore production for the third quarter from last year. Looking ahead, the mining giant maintained its fiscal 2013 production guidance for the three major divisions of iron ore, copper and petroleum despite weather-related disruptions in its Queensland coal and Western Australia iron ore operations.
For the third quarter ended March 31, 2013, BHP Billiton's iron ore production totaled 40.21 million metric tonnes, up from 37.94 million metric tonnes in the year-ago period. However, production declined 5 percent from 42.19 million metric tonnes in the preceding second quarter. For the nine-month period, output advanced 6 percent to 122.17 million metric tonnes.
According to BHP Billiton, the Western Australia Iron Ore, or WAIO, achieved record production for the nine-month period. The company maintained its production guidance for fiscal 2013 at 183 million tonnes on a 100 percent basis, despite cyclone-related downtime during the period. The company anticipates an annualized production rate of 200 million tonnes on a 100 per cent basis for the June 2013 quarter.
Copper output increased 9 percent from last year to 307 thousand metric tonnes and was also up 4 percent from the prior quarter. The company affirmed that total Escondida copper production in Chile was on track to increase by at least 20 percent in fiscal 2013.
Meanwhile, total petroleum production for the March quarter was 55.42 million barrels of oil equivalent or boe, down 2 percent from last year and 7 percent from the preceding quarter. However, the company maintained its full-year production guidance at about 240 million boe.
BHP Billiton noted that onshore U.S. produced more than 5 million barrels of liquids during the latest quarter and Eagle Ford was now the company's single largest liquids producing field.
Crude oil, condensate and natural gas liquids volumes in the quarter declined 8 percent from the year-ago period. According to BHP Billiton, a 15 percent increase in liquids production at its onshore U.S. business during the quarter partly offset cyclone-related downtime at the Western Australian operations as well as extended maintenance and drilling delays at its non-operated facilities in the Gulf of Mexico natural field decline.
Natural gas production declined 1 percent from last year and 6 percent sequentially due to lower levels of drilling activity in the company's dry gas Haynesville and Fayetteville fields in the U.S. in addition to a seasonal reduction in natural gas demand at Bass Strait in Australia.
Aluminium production in the quarter grew 10 percent from last year and increased 2 percent from the preceding quarter to 304 thousand tonnes, as Hillside production in South Africa returned to full technical capacity.
Nickel production edged up 1 percent from last year and 21 percent from the previous quarter to 42,100 tonnes.
BHP Billiton's production of metallurgical coal during the quarter rose 22 percent from the prior year to 8.97 million tonnes. The company noted that Queensland Coal production was affected by adverse weather conditions during the quarter.
"However, recently installed flood mitigation infrastructure enabled a rapid recovery in performance and the business was operating at full supply chain capacity at the end of the period," BHP Billiton said.
On April 10, BHP Billiton completed the sale of its diamonds business, comprising its interests in the EKATI Diamond Mine and Diamonds Marketing operations, to Dominion Diamond Corp. for $553 million in cash, after adjustments.
BHP's rival Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) on Tuesday reported higher iron ore production and shipments in the first quarter, recovering rapidly from the seasonal weather disruptions. The company's production of copper and aluminum also increased from last year.
In Wednesday's regular trading on the Australian Securities Exchange, BHP.AX is trading at A$31.84, down A$0.31 or 0.95 percent on a volume of 4.57 million shares.
For comments and feedback: editorial@rttnews.com