BHP Billiton achieves record iron ore production in first half

BHP Billiton (ASX: BHP; LSE: BLT) reported record half-yearly production in its iron ore and petroleum businesses for the period to December 31 2009, producing approximately 62.5 million tonnes of iron ore and 79.57 million barrels of oil equivalent (boe).

The company experienced strong price recovery across its commodities during the second quarter, driven by Chinese demand and restocking in the developed world. However BHP Billiton expects increasing volatility in the short term, as government stimulus is withdrawn. Additionally Chinese intentions to control loan growth will add another future variable.

The group’s total nickel and zinc production inthe first half broke previous records, reaching 84,400 tonnes and 106,260 tonnes respectively. Nickel production increased by 20% against the same period last year, whilst Zinc production rose 58% from 2008.

The statement also showed record production amongst many of the company’s Australian based subsidiaries. Western Australia Iron Ore, North West Shelf, Hunter Valley Energy Coal, Poitrel and Nickel West all achieved half yearly production records. During the half year, Western Australia Iron Ore’s Rapid Growth Project 4 (RGP4) reached first production. On completion of RGP4, the operating subsidiary has more than doubled its installed capacity since the accelerated growth program commenced in 2002.

Elsewhere in Brazil, expansion of the company’s 36% owned Alumar refinery was completed and the facility subsequently achieved record quarterly production. In its Samarco iron ore operations, 50:50 joint venture with Vale (NYSE: VALE), quarterly production also exceeded previous records.

During the half, overall copper production fell 10% to 555,000 tonnes. Across all operations, lead production was 4% lower at 124,433 tonnes, while the company’s coal production was also lower, Energy coal production was reduced by 1% to 35.5 million tonnes and metallurgical coal output dropped 5% to almost 18.3 million tonnes produced.

According to BHP Billiton, the government stimulus measures supported a return to normalised global trade and most key indicators showed improvement. However the company said the speed of recovery in the developed economies remains uncertain, particularly considering the eventual withdrawal of government stimulus.  http://www.proactiveinvestors.co.uk/companies/news/12410/bhp-billiton-achieves-record-iron-ore-production-in-first-half-12410.html