BHP announces record production

BHP Billiton has produced record quantities of natural gas, alumina, aluminium, copper, nickel, iron ore and manganese ore in the nine months to March, underpinned by strong demand.

It said that record year to date production had been achieved at the North West Shelf Venture thanks to strong demand, as well as at the Zamzama and Escondida operations in Pakistan and Chile respectively.

In the three months to March, natural gas production rose 14 per cent from the corresponding period last year to 86.67 billion cubic feet and rose two per cent to a new record of 260.47 billion cubic feet for the nine-month period.

But total production of petroleum products rose six per cent during the quarter to 27.68 million barrels of oil equivalent (BOE) and were up one per cent to 85.53 million BOE for the nine-month period.

"Total production year to date was in line with the nine months to March 2006," BHP Billiton said.

"Natural field decline has been completely offset by operational improvements and no new operations commencing production during the period.

"Production was higher than the March 2006 quarter mainly due to improved facility uptime, reduced weather impacts, and increased gas sales."

Copper enjoyed a record year to date, production in the quarter up 22 per cent to 357,600 tonnes and up four per cent in the nine-month period to 908,000 tonnes.

"Record year to date (in copper) and quarterly production reflecting the successful ramp up of the Escondida Sulphide Leach Project and Spence (both Chile)," BHP Billiton said.

"During the quarter Spence produced 33,500 tonnes, which is equivalent to 67 per cent of nameplate capacity on an annualised basis."

Alumina production climbed one per cent during the quarter to 1.085 million tonnes and up six per cent in the nine-month period to a record 3.316 million tonnes.

Aluminium added one per cent in the quarter to 331,000 tonnes and rose two per cent in the nine-months to a new high of 1.006 million tonnes.

Nickel production soared 14 per cent during the quarter to 45,800 tonnes, while it rose four per cent to 138,600 tonnes in the nine-months to hit yet another record.

"Production for the nine months ended March 2007 was an all time record, reflecting strong operational performances from all operations," BHP Billiton said.

The world's biggest miner also said that record iron ore production and sales were achieved for the nine months ended March 2007.

"This reflects increased production from the recently expanded Western Australia Iron Ore operations in response to continuing strong customer demand," BHP Billiton said.

"Cyclone activity and tie-in activity for Rapid Growth Project 3 (Australia) impacted the Western Australia Iron Ore operations during the current quarter."

Production for the quarter was up eight per cent to 22.884 million tonnes, while nine-month production was also nine per cent higher at 72.451 million tonnes.

Production of manganese ore rose during the quarter, again driven by strong customer demand, up 18 per cent in the quarter to 1.452 million tonnes.

Manganese alloy also rose 14 per cent to 197,000 tonnes, which BHP Billiton attributed to optimisation of the product mix, improved equipment availability and utilisation.

Metallurgical coal production added seven per cent in the quarter to 9.084 million tonnes.

"Production was higher for the nine months and quarter ending March 2007 due to the start up of Poitrel (Australia) and the impact of planned maintenance in prior periods," BHP Billiton said.

Energy coal production rose during the three months to March by 12 per cent to 20.930 million tonnes.

"Operational improvement initiatives at Hunter Valley Coal, a shorter longwall move at San Juan and reduced weather impacts in South Africa led to higher production versus the March 2006 quarter