BHP Billiton FY Total Iron Ore Production Down 2%

(RTTNews) - BHP Billiton Ltd. (BHP.AX, BLT.L, BBL, BHP) reported that its total iron ore production for the 2016 financial year was 226.96 million tonnes, down 2 percent from the previous year. Total iron ore production is expected to increase to between 228 and 237 Mt in the 2017 financial year, excluding production from Samarco.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said,"Over the next 12 months, we expect volumes and costs across our minerals businesses to benefit from our continued drive to safely improve productivity. We can create significant value through further cost reductions, taking advantage of latent capacity in our assets and investing in low-capital projects. These initiatives are expected to grow production by five per cent in copper, up to four per cent in iron ore and three per cent in metallurgical coal in the next financial year."

BHP Billiton expects Underlying attributable profit in the June 2016 half year to include additional items related to: reversal of previously recorded inventory write-downs reflecting a slight recovery in commodity prices; redundancies largely associated with the simplification of business; and impairments predominately in Coal business.

In addition, the Group expects to record an exceptional item for global taxation matters between US$150 and US$200 million in the June 2016 half year. This includes potential litigation and tax-related amounts.

Total petroleum production for the 2016 financial year decreased by six per cent to 240 MMboe. Petroleum production is forecast to decrease to between 200 and 210 MMboe in the 2017 financial year.

Crude oil, condensate and natural gas liquids production for the 2016 financial year decreased seven per cent to 116 MMboe.

Natural gas production for the 2016 financial year declined five per cent to 745 bcf.

Petroleum capital expenditure for the 2016 financial year declined approximately 50 per cent to US$2.5 billion. A further 44 per cent reduction to approximately US$1.4 billion is planned for the 2017 financial year.

Total copper production for the 2016 financial year decreased by eight per cent to 1.6 million tonnes.

Energy coal production for the 2016 financial year decreased by 16 per cent to 34 Mt. Energy coal production is forecast to decrease to 32 Mt in the 2017 financial year as productivity improvements at New South Wales Energy Coal partially offset the divestment of our New Mexico Coal assets.