BHP Billiton says copper price adjustment to cut H1 earnings by 220 mln usd

BHP Billiton says copper price adjustment to cut H1 earnings by 220 mln usd

	Published : Thu, 25 Jan 2007 00:12 By : Agencies Print this Story

SYDNEY (XFN-ASIA) - BHP Billiton said copper price adjustments will cut its earnings for the six months ended December by 200 mln usd.

It said in its December quarter production report that the group had 205,129 metric tons of copper sales that were provisionally priced at a weighted average price of 6,325 usd per ton but the final price of these sales will be determined in 2007 and will reflect lower prices.

In addition, 274,280 ton of copper sales were subject to a finalization adjustment from the September quarter.

The world's largest diversified resources group reported mixed output results for the first half across its product range with copper output down five pct from the previous first half, partly because of industrial action at its key Escondida mine in northern Chile.

BHP Billiton said Escondida recovered in the second quarter to December to achieve record quarterly output, due to continued ramp up of the sulphide leach project.

Total petroleum output fell two pct from the previous first half but the group said an improving base operational performance had a very positive impact and reduced the effect of natural field decline.

Iron ore was a star performer with output rising nine pct from the previous first half to 49.57 mln tons as output was ramped at the recently expanded Western Australia iron ore operations in response to continuing strong customer demand.

Record half year and quarterly production of aluminum, alumina and manganese ore from continuing operations was also achieved in response to strong customer demand.

Aluminum output rose three pct from the previous first half to 675,000 tons, alumina output rose nine pct to 2.23 mln tons and manganese ore output rose 14 pct to 3.04 mln tons.

Nickel output was unchanged from the previous first half at 92,800 tons.

Energy coal output fell three pct to 43.81 mln tons while coking coal output rose one pct to 18.2 mln tons.

Uranium oxide output from the group's Olympic Dam mine in South Australia fell 25 pct due to

variability of ore sources, unscheduled maintenance and reduced ore hoisting.

Lead output fell 40 pct from the previous first half to 85,431 tons and silver output dropped 44 pct to 13.91 mln ounces due to the partial closure at the Cannington mine in the Australian state of Queensland as ground support at the underground mine was rehabilitated.

Zinc output fell 17 pct to 19,776 tons, partly reflecting the partial closure of Cannington as well as lower headgrades at the lower head grades at Antamina mine in Peru.

Diamond output at the Ekati mine in Canada dropped three pct from the previous first half to 1.43 mln carats as but in the December quarter, processing of higher grade ore had a positive impact on production.

bruce.hextall@xfn.com