BHP on target despite Whaleback fire

BHP BILLITON, the world’s biggest mining company, said first-quarter iron ore output fell 3 percent on planned maintenance and a fire at its Mt Whaleback operation in Australia, though it expects to meet its full-year target.

Output was 55.6 million tons in the three months ended September 30, from 58 million tons a year earlier, Melbourne-based BHP said yesterday.

That missed a 58.8 million tons median estimate among four analysts surveyed.

Full-year output from its Australian mines, including third party tons, remains on course to rise to a range of 275 million to 280 million tons in fiscal 2018, BHP said.

Rio Tinto Group on Tuesday reported it was on track for 2017 shipments of 330 million tons after quarterly cargoes jumped 6 percent on higher rail capacity.

Imports by China surged to a record in September, topping a previous high set in 2015, as the world’s top steel maker’s drive to boost air quality stokes demand for imported higher-grade and less-polluting raw materials.

Copper production surged 14 percent to 404 000 tons, boosted by the ramp-up of the Los Colorados Extension project at Chile’s giant Escondida mine, BHP said.

Output at the operation hit a more than two-year high in August, according to Chile’s government.

BHP declined 0.8 percent to A$27.10 (R284.33) at 10.58am in Sydney trading yesterday, as the benchmark S&P/ASX 200 Index gained 0.1 percent.

BHP’s shale operations, acquired in a $20bn string of deals in 2011, have been a focus for investor concern.