20 Jul BHP Billiton outperforms in copper, petroleum and coking coal
BHP Billiton (ASX:BHP) has announced it exceeded full year 2016 production guidance for copper, petroleum and coking coal, but has missed its full-year iron ore production target.
The Melbourne-based mining giant has also said its earnings for the financial year (2015) are anticipated to take a US$175 million hit connected to redundancy costs and coal business deterioration.
BHP’s total output at its Western Australian iron ore operations in the Pilbara grew by 2% to 257 million tonnes, but was roughly below previous forecasts. The miner expected to produce 265-27mt in its 2016/2017 financial year in Australia and 228-237mt worldwide, excluding Samarco.
Copper production of 1.58mt also surpassed guidance but dropped 8% compared to 2015.
The company expects a large boost to copper production for its 2017 financial year to 1.7mt assisted by a 9% jump in output at the Escondida mine in Chile, which is 57%-owned and operated by BHP and the rest Rio Tinto (ASX:RIO).
BHP’s coking coal operations output grew slightly at 43mt as record production at its five Queensland coal mines offset the halting of production at Crinum. The firm expects to add 1mt for 2017.
Coal for power generation continues to be reduced and will shrink 7% this year to 32mt after dropping 16% in 2015.
BHP’s petroleum branch generated 240 million barrels during the year, down 6%from last year but above guidance of 237 million barrels.