Coal news and updates

BHP Billiton has reported a strong third quarter from its Western Australian iron ore and Queensland coal operations, leading it to raise full-year production guidance from its two big mining units.

 

But the strong performance at its key minerals operations has come with a downgrade to the company’s forecast oil and gas production.

 

BHP produced a record 54.8 million tonnes of iron ore in the March quarter (including minority partners’ share) from its WA iron ore operations, up from 53.64 million the previous quarter and coming in slightly ahead of analysts’ expectations during a quarter that was affected heavily by poor weather.

 

Full-year iron ore guidance was raised by 5 million tonnes to 217 million tonnes (including partners’ interests), the second time it has been raised by that amount this year. Guidance for BHP’s share of coking coal production was boosted by 2.5 million tonnes to 43.5 million tonnes.

 

In Queensland, BHP has started commissioning the Caval Ridge coking coal project early.

 

Coal boss Dean Dalla Valle brought the Daunia project, BHP’s most recently started Queensland coal project, on under budget and the early start at Caval raises the possibility of the same thing happening there.

 

Oil and gas guidance was cut by 2 per cent to 245 million barrels of oil equivalent because of lower onshore shale gas and oil production in Texas and the sale of the company’s Liverpool Bay operation in Britain.

 

“Our productivity agenda continues to deliver outstanding results, underpinning a 10 per cent

 

increase in production so far this year,” chief executive Andrew Mackenzie said.

 

“Having achieved record iron ore and metallurgical coal production during the first nine months of this year, we have raised full-year guidance for both commodities.”

 

 

Source: http://www.theaustralian.com.au/