SYDNEY--BHP Billiton Ltd. (BHP) boosted its outlook for iron-ore
production for the second time this fiscal year, saying it expected
to produce more of the steelmaking ingredient than expected thanks
to a strong performance from a new Australian mine and productivity
improvements across its operations.
The world's biggest mining company said Wednesday it expected to
produce 217 million metric tons of iron ore from its Australian
mines in the year through June, up from previous guidance of 212
million metric tons and an initial estimate for the year of 207
million tons. The lift in output signals confidence China's rapid
industrialization will continue to lift demand for the raw material
used for building everything from cars to skyscrapers. BHP produced
187 million metric tons of iron ore from its Australian mines last
financial year.
A key factor in the higher guidance figures--which include the
share of output of minority venture partners--has been improvements
to its supply chain, as well as the start of production at a new
mine, Jimblebar, ahead of schedule. BHP also said it had only seen
limited disruptions from bad weather in Australia's northwest in
recent months.
In a quarterly report, the group said its independent share of
iron-ore production increased by 23% to 49.6 million tons in the
three months through March compared with a year earlier.
BHP also reported a 28% rise in production of metallurgical
coal, used in steelmaking, and an 11% lift in thermal coal, used to
generate electricity. It increased its full-year guidance for
metallurgical coal production by 2.5 million tons, to 43.5 million
tons.
Quarterly petroleum output totaled 60.9 million barrels of oil
equivalent, up 10% on year, largely because of a lift in production
from its Atlantis oilfield in the Gulf of Mexico. The company
trimmed its full-year estimates by 2% following the sale of its
Liverpool Bay oilfield in the U.K. and on expectations of lower gas
production in the Hawkville area of the Eagle Ford.
The miner's aluminum business, meanwhile, continued to
struggle.
"Challenging conditions in the aluminium industry continue to
persist," the company said as it announced it would cut its
capacity at the Alumar refinery in Brazil by 58,000 tons in the
current quarter through June. It had already cut output there in
2013 and said total group aluminum production fell 6% on-year last
quarter to 286,000 tons.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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