The last of the big three ore miners it out with its Q3 production report and the BHP ore pumps are singing:
BHP Billiton maintained strong momentum in the September 2013 quarter as production increased by 11% from the prior corresponding period. Optimisation of the Western Australia Iron Ore (WAIO) supply chain continues to unlock substantial value with 2014 financial year production guidance raised to 212 million tonnes (100% basis). Full year production guidance is maintained for Petroleum, Copper and Coal.
Total petroleum production for the September 2013 quarter was a record 62.7 million barrels of oil equivalent. A 16% increase in liquids production was underpinned by significant growth in Onshore US volumes, primarily in the Black Hawk, and the start-up of a new production well at Atlantis. An additional Atlantis production well is scheduled for completion in the second half of the 2014 financial year.
Queensland Coal continued to benefit from its focus on productivity as it sustained an annualised production rate of 61 million tonnes (100% basis) in the September 2013 quarter.
Four major projects delivered first production, including the WAIO Jimblebar Mine Expansion where first production was achieved approximately six months ahead of the original schedule. All other projects are tracking to plan.
Our ability to simplify our portfolio and focus on our diversified pillars of Petroleum, Copper, Iron Ore and Coal remains an important point of differentiation. Since the beginning of the 2013 financial year the Group has completed major transactions totalling US$6.5 billion, which includes US$2.2 billion received in the financial year to date.
BHP Billiton maintained strong momentum in the September 2013 quarter as production increased by 11 per cent from the prior corresponding period. Optimisation of the WAIO supply chain continues to unlock substantial value with 2014 financial year production guidance raised to 212 million tonnes (100 per cent basis). Full year production guidance is maintained for Petroleum, Copper and Coal.
Our WAIO business achieved another major milestone during the quarter with first production delivered from the Jimblebar Mine Expansion, six months ahead of its original schedule. The ramp up of phase one capacity to 35 million tonnes per annum (mtpa) is expected to be completed by the end of the 2015 financial year. Together with the recent installation of four mobile crushers, this will increase total WAIO supply chain capacity to in excess of 220 mtpa (100 per cent basis). Longer term, a low cost option to expand Jimblebar to 55 mtpa and the broader debottlenecking of the supply chain is expected to underpin capital efficient growth in capacity to approximately 260 mtpa to 270 mtpa (100 per cent basis).
That’s a quality performance. Both the 2014 and longer term production guidances have grown. More ore!
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
