BHP increases iron ore output but copper production falls in 2017

BHP increases iron ore output but copper production falls in 2017

BHP (ASX:BHP) has delivered a mixed-bag of results across its operations in its full-year production report for the 12 months to end-June 2017, with iron ore output rising but copper production falling.

The world’s number one mining company by value reported a 4% rise in iron ore production to 231 million tonnes year-on-year at its Western Australia division, thanks to a continued ramp-up of capacity at its Jimblebar operations.

As a result of this continued ramp-up, BHP expects iron production to rise by 3-5% in the current financial year to end-June 2018.

However, copper production over the 2016/2017 financial year plummeted by 16% to 1.3 million tonnes due to a power outage at its Australian Olympic Dam operations and a 44-day strike at its Escondida mine in Chile.

But expansion plans at Escondida over the coming year come as a welcome boost to the firm, who expect copper output to recover by 25-35% in the 2017/2018 period.

Coking coal production declined 6% to 40 million tonnes as a result of the effects of Cyclone Debbie, while zinc output rocketed up by 58% to 87,500 tonnes.

@RGNonline