BHP Billiton Notches Iron Ore, Met Coal Output Records -- Commodity Comment
July 17 2018 - 8:42PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Billiton Ltd. (BHP.AU) on Wednesday reported an 8%
increase in group copper-equivalent production for the year through
June, including output records at its Australian iron ore and
metallurgical coal operations. Here are some comments from the
report.
On iron-ore output:
"Total iron ore production for the 2018 financial year increased
by 3% to a record 238 million tons (275 million tons on a 100%
basis). Western Australia iron ore production of between 241-250
million tons, or between 273-283 million tons on a 100% basis, is
expected in the 2019 financial year. A program of work to optimize
maintenance schedules across our supply chain and improve port
reliability and performance is planned for the September 2018
quarter, with a corresponding impact expected on production and
unit costs."
On petroleum production:
"Total petroleum production for the 2018 financial year
decreased by eight per cent to 192 million barrels of oil
equivalent. In our Conventional business, volumes are expected to
decrease to between 113-118 million barrels of oil equivalent in
the 2019 financial year as a result of additional downtime from
planned dry dock maintenance at Pyrenees and natural field decline
across the portfolio. Given our intention to exit Onshore U.S., no
annual guidance for the 2019 financial year for these assets will
be provided, however until completion, which we are targeting by
the end of the 2018 calendar year, we expect a production run rate
broadly consistent with the second half of the 2018 financial
year."
On Escondida copper output:
"Escondida copper production for the 2018 financial year
increased by 57% to 1.2 million tons, reflecting a full year of
production following the industrial action in the previous year and
supported by the start-up of the Los Colorados Extension project on
Sep. 10, 2017. Production of between 1.12-1.18 million tons is
forecast in the 2019 financial year, as higher expected throughput
is offset by a significant decrease in average concentrator head
grade consistent with the mine plan."
On Olympic Dam copper output:
"Olympic Dam copper production decreased by 18% to 137,000 tons
as a result of the planned major smelter maintenance campaign in
the first half of the 2018 financial year and a slower than planned
ramp-up. The operation returned to full capacity during the June
2018 quarter. Production is expected to increase to between
200-220,000 tons in the 2019 financial year reflecting improved
operational stability and higher ore grades from the Southern Mine
Area."
On Australian metallurgical coal production:
"At Queensland Coal, record production for the 2018 financial
year was supported by record stripping performance, increased truck
hours and higher wash-plant utilization from low-cost
debottlenecking activities. Production records were achieved at
Peak Downs, Saraji, Caval Ridge, South Walker Creek and Poitrel. In
the June 2018 quarter, production increased by 16% from the
previous quarter following improved operational conditions at
Blackwater (geotechnical issues) and Broadmeadow (challenging roof
conditions), increased feed rates at the Caval Ridge wash-plant,
and utilization of additional wash-plant capacity at Poitrel
following the purchase of the remaining 50% of the Red Mountain
processing facility."
-Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
July 17, 2018 20:27 ET (00:27 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
BHP Billiton (ASX:BHPCD)
Historical Stock Chart
From Mar 2024 to Apr 2024
BHP Billiton (ASX:BHPCD)
Historical Stock Chart
From Apr 2023 to Apr 2024