BHP Billiton has lifted its production guidance for Western Australian iron ore to 217 million mt for the 12 months to June 30, up by 5 million mt from its earlier estimate, the Melbourne-based miner said Wednesday.
The "relatively limited impact" of the wet weather in the Pilbara region of Western Australia in the January-March quarter, along with the continued ramp-up of its new Jimblebar mine, have allowed BHP to produce more iron ore than previously expected, it said.
BHP said it expected Jimblebar to reach phase one capacity of 35 million mt/year by mid-2015. The mine started up in the June quarter of last year and produced 4.6 million mt in the March 2014 quarter.
BHP produced a total of 49.6 million mt of iron ore from its global operations in the March quarter, up 23% on the same period in 2013, but up just 1% on the previous December quarter.
In the nine months to end-March, the miner produced 147.4 million mt of iron ore, up 21% on the same period a year earlier, the company said in its March quarter production report.
The March quarter is usually the weakest for Australian iron ore exports as heavy rain and cyclones can impact mining operations and infrastructure in the northern parts of Australia. However, strong monthly exports from Port Hedland -- which is used primarily by BHP and Fortescue Metals Group -- to date this year indicated the seasonal drop-off would not be as severe as usual.
Indeed, January-March exports from Port Hedland of 90.5 million mt were up 35% on the 66.9 million mt shipped in the same period a year earlier.
BHP's metallurgical coal production of 11.5 million mt in the January-March quarter was up 28% on the same period a year earlier, but down 1% on the December quarter. The miner produced 33.2 million in the nine months to end-March, 24% higher than the same period the year before.
The miner said the strong production seen to date in the current fiscal year had allowed it to lift is coal output guidance by 2.5 million mt to 43.5 million mt for the 12 months to June 30.
BHP attributed the stronger met coal output largely to an increase in truck and wash-plant utilization rates at its Queensland coal operations.
The miner produced 17.7 million mt of thermal coal in the March quarter, up 11% on the previous year but flat on the previous quarter. It produced 55 million mt of thermal coal in the nine months to end-March.
