BHP Bhp Group Limited

   By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) on Wednesday reported an 8% increase in group copper-equivalent production for the year through June, including output records at its Australian iron ore and metallurgical coal operations. Here are some comments from the report.

On iron-ore output:

"Total iron ore production for the 2018 financial year increased by 3% to a record 238 million tons (275 million tons on a 100% basis). Western Australia iron ore production of between 241-250 million tons, or between 273-283 million tons on a 100% basis, is expected in the 2019 financial year. A program of work to optimize maintenance schedules across our supply chain and improve port reliability and performance is planned for the September 2018 quarter, with a corresponding impact expected on production and unit costs."

On petroleum production:

"Total petroleum production for the 2018 financial year decreased by eight per cent to 192 million barrels of oil equivalent. In our Conventional business, volumes are expected to decrease to between 113-118 million barrels of oil equivalent in the 2019 financial year as a result of additional downtime from planned dry dock maintenance at Pyrenees and natural field decline across the portfolio. Given our intention to exit Onshore U.S., no annual guidance for the 2019 financial year for these assets will be provided, however until completion, which we are targeting by the end of the 2018 calendar year, we expect a production run rate broadly consistent with the second half of the 2018 financial year."

On Escondida copper output:

"Escondida copper production for the 2018 financial year increased by 57% to 1.2 million tons, reflecting a full year of production following the industrial action in the previous year and supported by the start-up of the Los Colorados Extension project on Sep. 10, 2017. Production of between 1.12-1.18 million tons is forecast in the 2019 financial year, as higher expected throughput is offset by a significant decrease in average concentrator head grade consistent with the mine plan."

On Olympic Dam copper output:

"Olympic Dam copper production decreased by 18% to 137,000 tons as a result of the planned major smelter maintenance campaign in the first half of the 2018 financial year and a slower than planned ramp-up. The operation returned to full capacity during the June 2018 quarter. Production is expected to increase to between 200-220,000 tons in the 2019 financial year reflecting improved operational stability and higher ore grades from the Southern Mine Area."

On Australian metallurgical coal production:

"At Queensland Coal, record production for the 2018 financial year was supported by record stripping performance, increased truck hours and higher wash-plant utilization from low-cost debottlenecking activities. Production records were achieved at Peak Downs, Saraji, Caval Ridge, South Walker Creek and Poitrel. In the June 2018 quarter, production increased by 16% from the previous quarter following improved operational conditions at Blackwater (geotechnical issues) and Broadmeadow (challenging roof conditions), increased feed rates at the Caval Ridge wash-plant, and utilization of additional wash-plant capacity at Poitrel following the purchase of the remaining 50% of the Red Mountain processing facility."

-Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

July 17, 2018 20:27 ET (00:27 GMT)

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