BHP Billiton has posted solid production growth in the first quarter of the financial year, lifting iron ore output by 7 per cent, but recording a fall in copper production.
The resources giant has maintained production guidance across all its five main commodities businesses.
Copper production in the September quarter fell 3 per cent to 377,000 tonnes but the company expects to maintain its annual target of 1.5 million tonnes, helped by a jump at the Olympic Dam operations in South Australia.
It expects to ship 247 million tonnes of iron ore in 2015/16.
It produced record volumes at its Western Australia Iron Ore unit, helped by the ramp-up of the Jimblebar mining hub and improved ore handling plant utilisation at Newman.
Of the 67 million tonnes produced at the Pilbara operations in the three months to September, BHP’s share was 61.3 million tonnes.
“BHP Billiton remains on track to meet full year production and cost guidance after a solid operational performance this quarter,” chief executive Andrew Mackenzie said.
Earlier in October, rival miners Rio Tinto and Fortescue Metals Group both reported improved iron ore production for the quarter, despite softening prices.
BHP said petroleum production declined four per cent during the quarter to 64.5 million barrels of oil equivalent (mmboe).
But, it expects to achieve the production target of 237 mmboe this financial year, although it will pare back capital expenditure for the petroleum business by $US200 million ($A275.35 million) to $US2.9 billion ($A3.99 billion).
In September, the company announced it would slash total capital and exploration expenditure by $US2.5 billion this financial year, amid softening commodities prices that had halved its annual profit in 2014/15.
– AAP
