Johannesburg - BHP Billiton on Wednesday said it had trimmed some production guidance for this year due to bad weather and the Samarco disaster in Brazil in November which killed 17 people.
BHP, the world's largest exporter of metallurgical coal, had already indicated in January that it would adjust its iron ore export targets for this year to 237 million tonnes, 10 million tonnes lower than its original target of 247 million tonnes.
But the mining giant, in its operational review on Wednesday, said iron ore production for the 2016 financial year was now expected to be approximately 229 million tonnes, three percent below prior guidance.
BHP said it produced 53.057 million tonnes of iron ore at its Western Australia iron ore operations in the three months to March 31, a 10 percent drop compared to a year ago, owing to “adverse weather conditions” as well as the start of an accelerated rail network programme.
However, BHP Billiton chief executive Andrew Mackenzie was optimistic, saying the company’s productivity continued to improve notwithstanding the disruption largely caused by adverse weather this quarter.
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“Over the last 12 months, we have taken a number of steps to strengthen BHP Billiton, including asset sales and the deferral of investment for long-term value,” Mackenzie said.
“While these measures will reduce our output his year, they have increased our focus on our highest-quality operations and will support stronger margins and returns.
“We have a pipeline of projects in copper and oil that allow us to bring high-margin volumes to market when the time is right. And as others cut back on exploration, our investment will go further and help create new options for the future.”
BHP also said it had maintained full year production guidance for petroleum, copper and coal. But total copper production for the nine months ended March decreased by eight per cent to 1.2 million tonnes.
The miner said it had planned petroleum capital expenditure of approximately $2.7 billion for this financial year, with a focus on high-return infill drilling opportunities in the Gulf of Mexico.
Metallurgical coal production for the nine months was broadly in line at 31 million tonnes and guidance for 2016 also remained unchanged at 40 million tonnes.
AFRICAN NEWS AGENCY