Mining giant BHP Billiton has lifted production nine per cent, driven by increasing iron ore, coal and petroleum output.
Chief executive Andrew Mackenzie said the company was on track to reach its target of 16 per cent production growth over the two years to the end of the 2015 financial year.
The company’s West Australian iron ore joint venture lifted production 15 per cent in the three months to September, compared to a year ago, to a quarterly record of 62 million tonnes.
The group’s total iron ore output was up 17 per cent from the same time the previous year, and one per cent compared to the June quarter.
Metallurgical coal production rose to 12.8 million tonnes, up 25 per cent from a year ago and four per cent on the June quarter.
Petroleum production increased seven per cent from a year ago to 67.4 million barrels of oil equivalent thanks to a 49 per cent jump in output from the US, and up four per cent from the previous quarter.
Mackenzie said the company had no more major infrastructure projects underway in the Western Australian Iron Ore business and it was now focused on cutting costs.
“Western Australia Iron Ore, we have completed our major supply chain investments and, for the first time in a decade, we have no major projects in execution,” he said.
“With our focus now on maximising the value of existing infrastructure, we plan to reduce costs and invest judiciously in very low capital cost de-bottlenecking initiatives.”
BHP plans to cut cash costs for iron ore to less than $US20 a tonne as it continues to ramp up production.
Meanwhile, copper production dropped 17 per cent compared to the June quarter and was down three per cent on a year ago, due to lower ore grades and a power outage that affected its Chile operations.
Production of energy coal, alumina and aluminium also dropped compared to a year ago and the previous quarter. Manganese ores and alloys were up on a year ago, while ores were steady but alloys were down on the previous quarter.
Nickel production was sown 12 per cent on a year ago but up 16 per cent compared to the June quarter.
