BHP hits new production highs
January 19, 2010
BHP Billiton Limited (BHP) reported record production for petroleum, iron ore, nickel and zinc for the six months to 31 December 2009. Despite the upbeat results the miner remained cautious on the near term future citing factors such as the winding down of government stimulus packages around the world and Chinese lending restrictions as a cause for volatility.
However, for the last six months, BHP Billiton said the record production levels were also accompanied by strong growth in commodity prices as demand from China and restocking in the developed world continues apace.
Looking at its core iron ore production, the miner benefited from the Rapid Growth Project aimed at increasing capacity at its Pilbara operations. BHP produced 62.5 million tonnes of iron ore for the six months, 6% higher than the previous corresponding period ("pcp"), while quarterly production to 31 December 2009 was 11% higher than pcp at 32.5 million tonnes.
The company noted that since the start of the Rapid Growth Project in 2002 iron ore production has nearly doubled at its West Australian operations
BHP Billiton said that for the six months ended December 2009, 54% of Western Australia iron ore shipments on a wet metric tonne basis were based on annually agreed pricing, with the remainder sold on shorter term reference pricing.
Elsewhere, petroleum production also hit record levels of around 80 million boe across its range of oil, natural gas and other products such as condensate for the six months to 31 December 2009.
The figures are around 17% higher than pcp, however the miner noted that fourth quarter CY09 production was down slightly from the prior quarter.
The miner attributed the result to the ramp up of production at Shenzi in the US, strong performance from its Atlantis reservoir and good weather.
Across other metals, aluminium production was in line with prior periods at around 626,000 tonnes.
Lead production was also steady, while zinc and silver both saw production increase, largely due to increased grades and production at BHP’s Antamina mine in Peru.
Uranium production was down as a result of previously reported problems involving a lift shaft at its Olympic Dam mine.
The miner also dug up 1.5 million carats of gold.
At the close Tuesday, BHP shares were trading at $43.31.
However, for the last six months, BHP Billiton said the record production levels were also accompanied by strong growth in commodity prices as demand from China and restocking in the developed world continues apace.
Looking at its core iron ore production, the miner benefited from the Rapid Growth Project aimed at increasing capacity at its Pilbara operations. BHP produced 62.5 million tonnes of iron ore for the six months, 6% higher than the previous corresponding period ("pcp"), while quarterly production to 31 December 2009 was 11% higher than pcp at 32.5 million tonnes.
The company noted that since the start of the Rapid Growth Project in 2002 iron ore production has nearly doubled at its West Australian operations
BHP Billiton said that for the six months ended December 2009, 54% of Western Australia iron ore shipments on a wet metric tonne basis were based on annually agreed pricing, with the remainder sold on shorter term reference pricing.
Elsewhere, petroleum production also hit record levels of around 80 million boe across its range of oil, natural gas and other products such as condensate for the six months to 31 December 2009.
The figures are around 17% higher than pcp, however the miner noted that fourth quarter CY09 production was down slightly from the prior quarter.
The miner attributed the result to the ramp up of production at Shenzi in the US, strong performance from its Atlantis reservoir and good weather.
Across other metals, aluminium production was in line with prior periods at around 626,000 tonnes.
Lead production was also steady, while zinc and silver both saw production increase, largely due to increased grades and production at BHP’s Antamina mine in Peru.
Uranium production was down as a result of previously reported problems involving a lift shaft at its Olympic Dam mine.
The miner also dug up 1.5 million carats of gold.
At the close Tuesday, BHP shares were trading at $43.31.
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