BHP Billiton posts record iron ore, copper, aluminium output

BHP Billiton Ltd. Tuesday said strong demand has underpinned record annual production for many of its key commodities including iron ore, copper, aluminium, manganese ore, nickel and coking coal. Iron ore output for the fourth quarter rose 6% on year to 25.75 million metric tons on the back of the miner's expansion program at its Western Australian operations and full year production climbed 8% to a record 98.20 million tons. Copper production for the quarter climbed 17% on year to 342,100 metric tons and annual output rose 7% to 1.25 million tons on the back of the successful ramp up of the sulphide leach operation at the Escondida mine in Chile. BHP said a finalization adjustment of outstanding copper sales from this time last year will boost earnings in the 2006/07 financial year by about US$108 million. Aluminium output for the quarter was flat on year but annual production rose 2% to a record 1.34 million tons while annual alumina output climbed 7% to a record 4.46 million tons. Total petroleum production for the fourth quarter eased 1% on year while full year output was flat at 116 million barrels of oil equivalent. Thermal coal production for the year climbed 1% to 87.03 million tons and coking coal production climbed 8% to 38.43 million tons but BHP Billiton said third party infrastructure constraints continue to impact its coal export sales. BHP Billiton said its share of the cost of development of the Stybarrow oil project, a joint venture with Woodside Petroleum Ltd. (WPL.AU) has blown out 27% to US$380 million following the completion of a review of project costs. BHP Billiton shares were up 0.94 percent midday on the Australian Securities Exchange at A$38.64. Analysts said the results were slightly above expectations and strengthened predictions BHP Billiton would post full year net profits of around US$14.4 billion on Aug. 22 – up from last year's record US$10.45 billion. "I wouldn't rate it as anything other than good strong finish to the year that is pretty much in line with expectations, " JPMorgan analyst David George said. BHP Billiton has committed US$1.85 billion (€1.34 billion) to boost annual output at its Pilbara iron ore operations to 155 million tons and last month said it will look at boosting this to 300 million tons a year by as soon as 2013 in response to strong demand from Chinese steelmakers.