BHP reports record production

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jul 2008

BHP Billiton (BIL) reported that annual production was significantly up in 13 commodities, with records achieved in seven commodities in the year ended June. BHP spends $658m on mineral exploration "These records were delivered in 14 assets across six of our nine Customer Sector Groups (CSG). This was achieved in an environment in which supply disruptions and input cost pressures are placing challenges on the industry response to continued strong global demand for commodities," the group said in its annual production report.
The group achieved record shipments in iron ore and manganese, at a time when pricing reached unprecedented levels and demand outlook remains very strong. Western Australia Iron Ore achieved an eighth consecutive annual production record, maintaining an exceptional track record of project delivery.
Metallurgical coal production recovered strongly from the extreme weather interruptions during the March 2008 quarter.
Newly commissioned petroleum projects in fiscally stable regimes contributed to a record performance.
Ramp up of production from these projects and future growth options will continue to increase the weighting of high margin liquids in our portfolio mix at a time of historically high oil prices.
"We continue to develop and deliver world class projects that add significant shareholder value. First product was delivered from 10 major projects across five commodities during the year. A further seven major projects were sanctioned during the period. Over the past quarter we announced a significant increase in our iron ore and manganese resources and reserves," it said.
This, along with the Pampa Escondida prospect (Chile), are excellent examples of the group’s deep inventory of expansion options. These options are underpinned by an extensive exploration and development program.
Annual production records were achieved in petroleum, copper, iron ore, manganese ore and alloy, alumina and molybdenum. Annual production also increased in crude oil and condensate, uranium, lead, zinc, silver and diamonds, it said.
Quarterly production records were achieved in alumina, copper, iron ore and manganese ore.
Annual production records were delivered in Western Australia Iron Ore, GEMCO, TEMCO, Illawarra Coal, Hunter Valley Coal, Minerva and Worsley (all Australia), Escondida (Chile), Samarco and Alumar (both Brazil), Samancor (South Africa), Cerrejon Coal (Colombia), Zamzama (Pakistan) and Paranam (Suriname).
Quarterly production records were delivered in Escondida, Yabulu (Australia), Western Australia Iron Ore, GEMCO, Samarco, Samancor, Alumar and New Mexico Coal (USA).
Annual volume growth of 27% in crude oil and condensate from the continuing ramp up of newly commissioned projects and strong operational performance was also achieved.
Annual uranium oxide concentrate production at Olympic Dam (Australia) was the highest since the Western Mining (WMC) acquisition, it added.

Source: The Times