BHP Billiton Q1 output of iron ore, coal at record levels

BHP Billiton Q1 output of iron ore, coal at record levels - UPDATE

	Published : Tue, 23 Oct 2007 00:37 By : Agencies Print this Story

SYDNEY (Thomson Financial) - BHP Billiton, the world's largest diversified resources group, said Tuesday output at its iron ore mines in Western Australia and at key coal projects in Australia and Colombia reached record levels in the first quarter to September.

In its quarterly production report, BHP said strong demand underpinned the record production as capacity was increased.

Iron ore production rose 7 percent from the previous year to 25.86 million tonnes, helped by the completion of a project aimed at expanding output in Western Australia's Pilbara region.

BHP Billiton said iron ore production in the current quarter will be affected by the planned, tie-in activity for a third project to boost output and will continue to do so for the next two quarters.

Energy coal production fell 4 percent from a year earlier to 19.62 million tonnes due to maintenance and poor geological conditions at the group's New Mexico mines in the US.

But the Hunter Valley coal operations in Australia and the Cerrejon project in Colombia achieved record output for the quarter.

Metallurgical coal production was up 4 percent from a year earlier at 19.63 million tonnes but was down 14 percent from the June quarter due to planned maintenance and the impact of unseasonal wet weather experienced at the Queensland coal operations in Australia.

Copper output rose 23 percent from a year ago to 307,800 tonnes, thanks to the continued ramp-up of the Escondida sulphide leach and Spence projects in Chile.

BHP Billiton said natural gas production was up 6 percent at 95.68 billion cubic feet, helped by the expansion of the North-West Shelf liquefied natural gas project in Western Australia and higher gas output in Pakistan.

Crude oil, condensate and natural gas liquids production dropped 5 percent to 14.39 billion barrels, reflecting natural field decline in mature projects.

BHP Billiton said nickel output fell 13 percent to 38,600 tonnes due to a scheduled maintenance shutdown at the Kalgoorlie smelter in Western Australia while production at the Yabulu refinery in the eastern Australian state of Queensland was also affected by maintenance outages.

Zinc out rose 55 percent to 37,259 tonnes due to improved performance at the Cannington mine in Queensland following the completion of a rehabilitation project at the mine site and increased output at the Antamina mine in Peru.

Lead output rose 25 percent to 61,073 tonnes, again helped by Cannington.

Silver output jumped 51 percent to 11.1 million ounces due to increased output at Cannington and Antamina.

Alumina output was up 7 percent at 1.2 million tonnes, helped by a record performance by the Worsley refinery in Western Australia while aluminium output was steady at 337,000 tonnes as all operations performed at record or near record capacity.

Manganese output was impacted by maintenance at the Samancor project in South Africa, falling 4 percent to 1.4 million tonnes though manganese alloy production rose 16 percent to 184,000 tonnes.

Uranium oxide output at the group's Olmypic Dam operation in South Australia rose to 933 tonnes from 793 tonnes a year earlier as more ore was hoisted from the underground mine and recoveries improved.

Diamond production at the Ekati mine in Canada's Northwest Territories surged 110 percent to 1.02 million tonnes due to improved recoveries and grade though there were a higher proportion of lower value carats production during the quarter.

bruce.hextall@thomson.com

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BHP Billiton Q1 output of iron ore, coal at record levels - UPDATE