Production Report of BHP Billiton
BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2010
22.07.2010 | Deskman: Frank Jablonski
To get a feeling about economic conditions, it helps to take a look at the big players in the markets. As one of these Australias BHP Billiton, headquartered in Melbourne, reports the production and fiscal situation at the end of its fiscal year, end of June. Following, please find a draft of the most important figures.
Melbourne, Australia - BHP Billiton core business is to discover, develop and convert natural resources. At the end of the fiscal year the company, which is listed at the Australian and London Stock Exchanges, reports on activities around the world.
The management of BHP Billiton‘s continues to be cautious on the short term outlook for the global economy. Uncertainty surrounds the near term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels. Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist. BHP Billiton sees these measures as a normal continuation of China’s economic management policies. Despite all uncertainness BHP can announce some good news.
- Western Australia Iron Ore achieved its tenth consecutive annual production record. Samarco (Brazil) also achieved quarterly and annual production records.
- Annual production records were achieved at North West Shelf, Hunter Valley Energy Coal, Worsley, Nickel West and Poitrel (all Australia), Alumar refinery (Brazil) and Zamzama (Pakistan).
- Quarterly production records were achieved for manganese alloy, Cerrejon Coal (Colombia) and Samancor Metalloys (South Africa).
Situation in selected areas
Alumina – Production was nine per cent higher than the year and quarter ended June 2009 due to record annual performance at Worsley and the ongoing ramp up of the recently expanded Alumar refinery. An unplanned interruption of the ship unloading capabilities at Alumar impacted current quarter performance. In addition, Worsley benefited from the processing of stockpiled hydrate in the March 2010 quarter.
Copper – Production was higher than the March 2010 quarter due to strong performance at Escondida (Chile), a return to full capacity at Spence (Chile) and improved plant utilisation at Cerro Colorado (Chile). Olympic Dam (Australia) recommenced hoisting from the Clark Shaft during the quarter and has returned to full production. Production for the year ended June 2010 decreased due to the Olympic Dam Clark Shaft outage, industrial action at Spence, lower grades at Cerro Colorado and Antamina (Peru), and the cessation of sulphide mining at Pinto Valley (USA). This was partly offset by higher grade and recovery at Escondida. Escondida production is expected to decline by five to 10 per cent in the 2011 financial year, mainly due to lower grade.
At 30 June 2010 the Group had 236,584 tonnes of outstanding copper sales that were revalued at a weighted average price of US$2.96 per pound. The final price of these sales will be determined in the 2011 financial year. In addition, 234,871 tonnes of copper sales from the 2009 financial year were subject to a finalisation adjustment in 2010. The finalisation adjustment and provisional pricing impact as at 30 June 2010 will increase earnings by US$303 million for the year (year ended June 2009 US$936 million loss).
Lead – Cannington (Australia) production increased over the previous year and quarter ended June 2009 due to higher grades and plant throughput.
Zinc – Production was higher than the year and quarter ended June 2009 due to higher plant throughput and utilisation, and higher grades at Antamina and Cannington.
Silver – Production was higher than the year and quarter ended June 2009 due to higher throughput and increased grade at Cannington.
Uranium – Production was lower than the year and quarter ended June 2009 due to the Clark Shaft outage at Olympic Dam. The Clark Shaft returned to full capacity during the June 2010 quarter.
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