BHP Billiton Q1 Iron Ore Production Up 17% - Update

(RTTNews) - Mining giant BHP Billiton Ltd. (BHP, BHP.AX, BBL, BLT.L), Tuesday reported a 17 percent year-over-year increase in iron ore production for the first quarter, and a 1 percent growth from the fourth quarter. Production of metallurgical coal grew 25 percent.

Chief Executive Andrew Mackenzie said, "Robust operating performance across our diversified portfolio in the September 2014 quarter delivered a nine percent increase in production with records achieved for eight operations and four commodities."

Mackenzie said the company remains on track to generate production growth of 16 percent over the two years to the end of the 2015 financial year.

"With our focus now on maximising the value of existing infrastructure, we plan to reduce costs and invest judiciously in very low capital cost debottlenecking initiatives," added Mackenzie.

The world's largest mining company reported a 17 percent increase in iron ore production to 57.09 million tons from the year-ago period. Production also inched up 1 percent from the prior quarter. Iron ore is the main raw material used for steel production.

The company said its iron ore production is forecast to increase by 11 percent in the 2015 financial year to 225 million tons, consistent with prior guidance.

BHP's first-quarter production of metallurgical coal, which is also used in steel making, grew 25 percent from last year to 12.77 million tons, and increased 7 percent from last quarter as Queensland Coal reported record production and sales.

Meanwhile, energy coal production declined 9 percent from the prior-year quarter to 17.84 million tons.

BHP's total petroleum production for the quarter grew 7 percent to 67.4 million barrels of oil equivalent or boe.

The company's alumina production edged down 1 percent to 1.24 million tons from last year, while aluminum production for the quarter plunged 16 percent to 261 thousand tons.

Copper production for the first quarter decreased 3 percent to 389,400 tons, while nickel production declined 12 percent to 35,700 tons from last year.

BHP closed Tuesday's trading at $59.83, up $0.51 or 0.86%, on the NYSE. The stock, however, dropped $0.29 or 0.49% in the after-hours trade.