BHP Has Lifted Its Production Guidance For Coal And Iron Ore

BHP has released its operational report for the March quarter. Image: Shutterstock.

BHP Billiton has lifted its coal and iron ore production guidances for the 2014 financial year.

Releasing its operation report today, the miner is realising extra tonnes with the ramp up of a number of big projects in Australia.

“Our productivity agenda continues to deliver outstanding results,” BHP CEO Andrew Mackenzie said.

“Having achieved record iron ore and metallurgical coal production during the first nine months of this year, we have raised full-year guidance for
both commodities.”

Extra capacity from BHP’s Jimblebar mine in Western Australia has boosted the miner’s iron ore full year production guidance 5 million tonnes to 217 million tonnes.

Iron ore production for the 2014 March quarter was 4.9567 million tonnes is up 23 per cent compared to the same quarter last year but was relatively stable quarter-on-quarter with only a 1 per cent production increase since the three months to December.

On Tuesday Rio Tinto cited a harsh wet season for production issues but BHP said it had “limited impact” on its iron ore operations.

On the coal side, BHP’s Daunia operation in Queensland has driven its full year metallurgical coal production guidance increase to 43.5 million tonnes.

Met coal production for the March quarter was 1.1467 million tonnes, up 28 per cent from the previous corresponding period.

BHP’s coking coal production was unchanged quarter on quarter but was up 11 per cent compared to the 2013 March quarter, producing 1.7723 million tonnes in the three months to March 2014.

Total energy coal production guidance for the 2014 financial year is unchanged at 73 million tonnes.

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