bhp predicts tough year for iron ore

BHP predicts tough year for iron ore
BHP Billiton is forecasting a tough year for iron ore production because of continuing infrastructure problems and labour shortages.

The company's chief operating officer of iron ore in Western Australia, Ian Ashby, has told an industry briefing that production is likely to plateau in 2007 because of the closure of its Goldsworthy mine and cost pressures.

Mr Ashby says labour shortages and production bottlenecks are the biggest issues affecting iron ore production.

"The supply chain is in fact affected for most months during next fiscal year and the bottleneck effectively is toggling through rail dumping and ship loading," he said.