BHP relents (just the beginning)

BHP Billiton takes 'slower path' to ultimate iron ore expansion target


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BHP Billiton has pushed back its ultimate expansion target of 290 million tonnes by deferring a project at Port Hedland, but has lifted its guidance for the current financial year as it squeezes maximum tonnes from its existing infrastructure.

BHP on Wednesday increased its iron ore production guidance by 5 million tonnes to 250 million tonnes for the year ending June 30 and is tipped to ship even more than that.

But the miner revealed it will take a "slower path" to hit its expansion target of 290 million, which it was originally slated to hit within the next two years, by June 2017.

"The potential of our installed infrastructure continues to exceed expectations and as a result we are deferring the inner harbour debottlenecking project," BHP said.

"While this will lead to a slower path to system capacity of 290 Mtpa, it will come at a lower capital cost."
Deutsche had been tipping BHP will easily beat its guidance of 245 million tonnes this year - to ship 250 million tonnes.