BHP sets iron ore output records, metallurgical coal activity hit by Queensland floods

Thursday, 20 January 2011 16:34:38 (GMT+3)   |  
       

On January 20, Australian mining giant BHP Billiton (BHP) announced its production report for the second half and fourth quarter of 2010, reporting record iron ore production and shipments for both periods.

Commenting on the results, BHP Billiton said, "Robust growth in developing economies remains the primary driver of commodity demand and further positive signs are emerging in the United States following the Federal Reserve's ongoing efforts to stimulate the economy. When coupled with supply side constraint, which has been further exacerbated by weather-related disruptions in countries such as Australia, Colombia and South Africa, BHP remains confident in the fundamentals for its core products."

New records in iron ore operations

Accordingly, in the last quarter of 2010, BHP's iron ore output totaled 33.67 million metric tons, increasing by five percent over the previous quarter and up four percent compared to the fourth quarter of 2009. In the second half of 2009, BHP's iron ore output increased by five percent year on year, reaching 65.65 million metric tons. Iron ore shipments were 37.29 million mt and 71.26 million mt in the last quarter and half of 2010 as opposed to 34.03 million mt and 66.71 million mt in the corresponding periods of 2009, respectively. The shipments data include tonnages of partnership operations as well. 

Record production and shipments were achieved for both the half year and quarter ended December 31, 2010 despite the impact of ongoing tie-in activities related to its growth projects, BHP Billiton said, pointing out that Western Australia iron ore shipments rose to an annualized rate of 148 million mt per year in the quarter (100 percent basis).

Metallurgical coal production hampered

Meanwhile, in the fourth quarter of 2010, BHP Billiton's metallurgical coal production, which also includes some thermal coal according to BHP statistics, totaled 7.79 million metric tons, decreasing by 24 percent compared to the third quarter and down 12 percent year on year. In the second half of 2010, the company's metallurgical coal production amounted to 18.09 million metric tons, declining by one percent over the same period of last year. BHP Billiton Mitsubishi Alliance's metallurgical coal shipments were 7.34 million mt and 16 million mt in the last quarter and half of 2010 as opposed to 7.9 million mt and 15.71 million mt in the corresponding periods of 2009, respectively.

Queensland Coal production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin in the second half of 2010, BHP Billiton said, stressing that this region's production dropped 30 percent in the last quarter of 2010 on quarter-on-quarter basis.

BHP's nickel output in the last quarter of 2010 amounted to 43,000 metric tons, up 12 percent over the third quarter but decreasing by 12 percent year on year. Nickel output in the last half of 2010 dropped by three percent to 81,500 metric tons compared to the corresponding period of 2009.


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