From the Australian Financial reviewBHP Billiton announces...

From the Australian Financial review



BHP Billiton announces record production
Jul 28 12:21
AAP


Mining colossus BHP Billiton produced a record 96.7 million tonnes of iron ore in 2004/05 and resources analysts are now looking forward to a huge annual profit result.

With commodity prices and demand sky high, BHP Billiton today said it had achieved record production for the year in iron ore, metallurgical coal, natural gas, aluminium, nickel, silver, lead and manganese.

The miner has timed its ramp up of iron ore production to coincide with the introduction of the record 71.5 per cent contract price increase on April 1.

Iron ore production for three months to June 30 was 25.296 million tonnes, up from 23.988 million tonnes in the previous quarter and 20.537 million tonnes in the June quarter of 2004.

Total shipments of iron ore from BHP Billiton's operations in the Pilbara were 23.901 million tonnes for the quarter, up from the 21.870 million tonnes shipped in the previous quarter.


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UBS resources analyst Glyn Lawcock said the production report had been slightly stronger than expected in most areas.

"Shipments were above expectations suggesting higher than expected revenue for the period," he said.

"As a result of what seemed to be a fairly strong quarter I would expect to see upgrades by the market."

BHP Billiton produced 37.303 million tonnes of metallurgical coal for the year, 5 per cent higher than in the previous year.

The mining giant said the increase was the result of a boost to production at its Queensland Coal operations and the commissioning of the Dendrobium mine at Illawarra Coal in April.

Copper production was 1.034 million tonnes, eight per cent higher than in the previous quarter but one per cent less than for the fourth quarter of 2004.

Production from recent acquisition WMC Resources, which was included in the figures for the first time, only began in June so the impact was limited.

BHP Billiton said the inclusion of copper production from WMC's Olympic Dam mine had been offset by the loss of production from the Cerro Colorado mine in Chile, which was disrupted by an earthquake in June.

The company's total petroleum production for the year was 119.03 million barrels of oil equivalent (boe), down 3 per cent on the previous year.

But production for the June quarter was 33.13 million boe, 9 per cent higher than for the same period in 2004, thanks to recently commissioned projects in the US, Algeria and Trinidad and Tobago.

Alumina production for the year was 4.182 million tonnes, in line with production in the previous year, and aluminium production was a record 1.33 million tonnes, six per cent higher than in 2004.

At 11.56am BHP Billiton's shares were up 18¢ at $19.35.


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