BHP Reports Oil Exploration Success, Copper Challenges -- Commodity Comment
17 October 2018 - 10:28AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Billiton Ltd. (BHP.AU), the world's largest listed
mining company by value, on Wednesday published an operational
report for its first fiscal quarter. BHP reported iron ore output
was higher year-on-year but down on the quarter immediately prior
and cut its full-year copper production target because of plant
outages. Here are some remarks from the report.
On iron ore production:
"At Western Australia Iron Ore, increased volumes were supported
by record production at Jimblebar and improved reliability across
our rail network and port operations. As expected, production was
lower than the June 2018 quarter as we optimized maintenance
schedules across the supply chain and implemented a program of work
to further improve port reliability and performance."
On oil exploration:
"In Petroleum, the Victoria-1 and Bongos-2 exploration wells in
Trinidad and Tobago, and the Samurai-2 well in the US Gulf of
Mexico, encountered hydrocarbons. A sidetrack of the Samurai-2 well
is currently being drilling to further appraise the discovery."
On Escondida mine:
"Escondida copper production increased by 10% to 295,000 tons
driven by higher copper concentrate output. This is a result of the
diversion of ore feed from sulphide leach to the three
concentrators to maximise their utilisation, which offset the
impact of expected lower copper grades and adverse weather
conditions in the quarter."
On Olympic Dam mine:
"Olympic Dam copper production decreased by 21% to 33,000 tons
as a result of an unplanned acid plant outage in August 2018.
Surface operations remain suspended as remediation works continue
on the gas converter, sulphur burner and waste heat boiler in the
acid plant. Surface operations are expected to recommence at the
end of October 2018 and ramp up to full capacity during November
2018."
On coal production:
"Metallurgical coal production was down 2% to 10 million tons.
Queensland Coal production reflected planned maintenance across
both port and mine operations. This was partially offset by record
stripping and truck performance at BMA, utilisation of latent
dragline capacity at Caval Ridge and higher wash-plant throughput
at Poitrel following the purchase of the Red Mountain processing
facility. The maintenance program of work is expected to continue
through the December 2018 quarter. A longwall move at Broadmeadow
is scheduled for the December 2018 quarter."
On group output:
"Group copper equivalent production increased by 2% in the
September 2018 quarter despite maintenance across a number of
operations. Volumes for the 2019 financial year are expected to be
broadly in line with last year."
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
October 16, 2018 19:13 ET (23:13 GMT)
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