BHP Billiton Q4 Iron Ore Output Up 17%; Posts Record 2013 Output

(RTTNews) - Mining giant BHP Billiton Ltd. (BHP, BHP.AX, BBL, BLT.L) reported Tuesday that its global iron ore production for the fourth quarter grew 17 percent year-over-year, and also increased 19 percent sequentially. Production of metallurgical coal grew 34 percent. Total iron ore production for the full-year 2013 increased 7 percent, delivering its thirteenth consecutive annual production record.

Meanwhile, smaller rival Rio Tinto Plc (RIO, RIO.L) reported Tuesday that its global iron ore production for the second quarter grew 7 percent from last year, and also increased 7 percent sequentially.

Issuing its production report for the fourth quarter ended June 30, 2013, BHP said it recorded a 17 percent increase in production of iron ore to 47.69 million tons from the year-ago period. Production also grew 19 percent from the prior quarter.

The world's largest mining company reported a 7 percent increase in full-year 2013 production to a record 169.86 million tons from last year. Iron ore is the main raw material used for steel production. The company also achieved annual production records across seven operations and five commodities.

BHP noted that this was a strong year of production as two of its major assets, Western Australia Iron Ore and Escondida, exceeded production guidance.

BHP's fourth-quarter production of metallurgical coal, which is also used in steel making, grew 34 percent from last year to 10.86 million tons, and increased 21 percent from the third quarter. Production for the year also increased 13 percent to 37.65 million tons.

Meanwhile, energy coal production grew 6 percent from the prior-year quarter to 19.54 million tons. It also increased 3 percent for the year to 72.89 million tons.

The miner said its total petroleum production for the fourth quarter grew 5 percent from the year-ago period to 59.19 million barrels of oil equivalent or boe. Total petroleum production also increased 6 percent in the 2013.

The company's alumina production grew 22 percent to 1.27 million tons from last year. Aluminum production for the quarter increased 25 percent to 0.31 million tons from the year-ago period.

The company's copper production for the fourth quarter increased 7 percent to 333,200 tons, and production of lead grew 5 percent to 67,034 tons from last year. Nickel production declined 6 percent to 40,300 tons from last year.

Meanwhile, the company completed in mid-April the sale of its diamonds business, comprising its interests in EKATI Diamond Mine (Canada) and Diamonds Marketing operations, to Dominion Diamond Corp. for an aggregate cash consideration of $553 million.

Looking ahead, the company noted that Western Australia iron ore production in the 2014 financial year is expected to increase to about 207 million tons, on an 100 percent basis, from the 2013 financial year.

For the year ended June 30, 2013, BHP's petroleum exploration expenditure was $675 million, of which $522 million was expensed. The company also spent $651 million on minerals exploration, of which $500 million was expensed.

BHP closed Tuesday's regular trading session on the NYSE at $62.60, up $1.72 or 2.83% on a volume of 1.85 million shares. In the past 52 weeks, the stock has been trading in a range of $53.66 to $80.55.