BHP Billiton cuts 2016 iron production

BHP Billiton cuts 2016 iron production

Following in Rio Tinto’s (LSE:RIO) measures yesterday, BHP Billiton (ASX:BHP) has cut its 2016 annual iron ore production by four per cent or 10(mt).

The mining firm generated 53mt of iron ore at its Western Australia operations, a ten per cent decrease from 2015.

Petroleum production dropped by four per cent in the three month period until the end of March and copper production fell eight per cent.

BHP cut its production due to “adverse weather conditions [Cyclone Stan] and the initiation of an accelerated rail network maintenance programme.”

The weather conditions from Cyclone Stan also affected Rio Tinto’s production.

Iron production is expected to be 260mt, four per cent lower than previous production. BHP’s full-year copper, coal and petroleum production was unchanged.

The oil giant said it was focusing on productivity and is taking steps to strengthen asset sales and deferral of investment.

“While these measures will reduce our output this year, they have increased our focus on our highest quality operations and will support stronger margins and returns,” said Andrew Mackenzie, BHP’s CEO. “We have the potential to significantly grow the value of our company.”