BUSINESS Ore- some finish for BHP

BHP’S iron ore production rose 3 per cent in the fourth quarter ended June 30 as productivity improved, cementing a record annual output as it set a bigger target for the current year.

The world’s biggest miner says its iron ore output rose to 72 million tonnes during the three months through June, compared with 70 million tonnes a year ago.

Full- year production came in at 275 million tonnes, with BHP setting a production target of 273- 283 million tonnes for 2017- 18.

“We have delivered a strong finish to the 2018 financial year with an 8 per cent increase in annual production and record output at Western Australia Iron Ore, Queensland Coal and at our Spence copper mine in Chile,” BHP chief executive Andrew Mackenzie ( pictured) said.

BHP shares were up $ 1.07, or 3.3 per cent, at $ 33.57 in a stronger Australian share market yesterday.

UBS had estimated fourthquarter iron ore shipments to remain almost constant year over year at 71.7 million tonnes on a 100 per cent basis.

The miner added that it expected to record a charge of $ US650 million in its 2017- 18 financial results for BHP Billiton Brasil on account of the Samarco Dam failure in Brazil’s Minas Gerais region, which left 19 people dead.

BHP and Vale, the co- owners of Samarco, last month reached an agreement with Brazilian public authorities to settle a 20 billion real ($ US5.3 billion) civil suit over the tragedy, which was one of the South American nation’s worst environmental disasters.

BHP also said yesterday that its plan to divest its underperforming US shale oil and gas business – which it bought in 2011 for $ US20 billion – is on track, and added that transactions could be completed later in the year.

The race for onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins is led by UK oil giant BP, which made an offer worth well in excess of $ 10 billion, people familiar with the matter said in June.

“Bids have been received and we aim to announce one or more transactions within the coming months, targeting completion of any transactions by the end of the 2018 calendar year,” BHP said its annual operational review.

Rival Rio Tinto, one of the world’s big four iron ore exporters, on Monday reported a surge in its Australian iron ore production and shipments in the three months to June 30.

BHP last month approved a new $ US2.9 billion mine in resource- rich northwestern Australia to meet Chinese demand.