Johannesburg – Global diversified miner BHP Billiton says
it has performed well in the 6 months to December.
In a statement issued on Wednesday, the listed mining
giant noted it achieved record production for at Western Australia Iron Ore
(WAIO). In addition, full-year production guidance maintained for its petroleum,
iron ore and coal operations.
However, its production guidance for copper has been reduced
to about 1.62 million tone, a 2 percent drop below prior guidance because of
the lower volumes now expected at Olympic Dam.
In petroleum, following the successful bid for Trion in
Mexico and positive drilling results at LeClerc and Caicos, an $820 million
exploration programme is now planned for the current financial year, it says.
BHP adds all major projects under development are
tracking to plan.
CEO Andrew Mackenzie says “we have performed well during
a period of higher prices, with record iron ore volumes achieved at WAIO. Our
simpler organisational structure has freed our assets to focus on what matters
most and to deliver safer and more productive operations.
“Our consistent delivery of operating and capital
productivity, and strict adherence to our capital allocation framework have
positioned us to maximise shareholder value.
Read also: BHP Billiton settles Samarco disaster
“In petroleum, we will accelerate our counter-cyclical
oil exploration efforts this year. Our successful Trion bid leaves us in a
leading position to develop the newly opened Mexican acreage in the Gulf of Mexico,
where we can leverage our core expertise.
In addition, he said: “We are encouraged by recent
positive drilling results at the LeClerc well in Trinidad and Tobago and the
Caicos well in the Gulf of Mexico. After the first successful rig, our Onshore
US gas hedging program will also be expanded to secure attractive returns.”
However, the company cannot yet say how its $47.5 billion
agreement with Brazilian authorities over the Samarco dam burst will affect its
figures.
It notes it expects underlying attributable profit to
include gains related to asset divestments in a range of about $150 million to $200
million.
BHP also expects to record an exceptional item of $164
million related to the cancellation of the Caroona exploration licence and
subsequent reimbursement received during the December 2016 half year.
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