BHP Billiton, the world's biggest mining company, has kicked off its 2010/11 financial year on a strong note, reporting increased production in 11 of its key commodities.The company said in its September quarter production report that most of its assets w
BHP Billiton, the world’s biggest mining company, has kicked off its 2010/11 financial year on a strong note, reporting increased production in 11 of its key commodities.
The company said in its September quarter production report that most of its assets were operating at capacity.
BHP said it produced a record amount of petroleum, despite the suspension of drilling activities in the Gulf of Mexico.
“Despite ongoing uncertainty in the developed world, BHP remains positive on the prospects for many of its core commodities and the underlying performance of its business due to strength in the emerging economies and the ongoing delay in the supply side response,” the company said.
Among its key commodities, BHP’s iron ore output for the September quarter rose 6% to 31.98 million tonnes compared with the same year-ago period, with the company enjoying ore prices at near five-month highs.
The company posted a 10% rise in output of metallurgical coal to 10.3 million tonnes. It would have been substantially higher than that, had it not been for planned maintenance at two of is Australian mines.
Heavy rainfall in Queensland during the September quarter also restricted overburden removal, which was also expected to affect coal mining in the December quarter.
BHP suffered a 5% drop in energy coal production, due in part to bad weather at its Colombian operations.
BHP last traded at $A40.66, down 50Ac from its close on Tuesday.
Earlier in the week, BHP was in the news when it said it would pursue an iron ore joint venture with Rio Tinto in Western Australia.
