BHP Billiton iron-ore output beats expectations

The company said a week ago it planned writedowns totalling US$2.8bn on some of its USA shale assets.

SYDNEY-BHP Billiton Ltd. said iron-ore production surpassed expectations last fiscal year, as it forecast another increase in output in the year ahead.

While iron ore production is expected to lift in 2016, BHP has flagged a pullback across its other three pillar commodities.

The development comes after Atlas Iron yesterday revealed it had raised $86 million by issuing new shares, well short of its $180m target as investors shied away amid the recent pressure on ore prices.

But the diversified miner said petroleum production was forecast to decrease by seven percent in the next financial year to 237 MMboe.

Port Hedland, which is also used by iron ore miner Fortescue Metals Group, shipped a record 446.9 million tonnes of cargo in the 12 months to June 30, port data shows.

The BHP Billiton comes amid an upgrade plans for construction of marine control tower and operations center totally worth 70 million United States dollars. the both infrastructure developments should be ready in early 2018.

The price of iron ore has surged clear of the $US50 mark in offshore trade, climbing nearly 4 per cent as its recovery from a 10-year low continues apace.

“Although our decision to cut spending in the Onshore USA will mean deferring gas volumes in the near term, we expect to realise greater value by developing our acreage later”, BHP chief executive Andrew Mackenzie said.

Metallurgical coal production increased by 13% to a record 43 Mt. We have improved the performance of our equipment, reduced costs, and increased volumes …

After a 14 percent drop in selling prices in fiscal 2015, BHP on Wednesday disclosed it will book up to $650 million in impairments, while another $382 million will be cut from earnings before interest and tax due to the repricing of 350,000 tonnes of copper sold the previous year on a provisional basis. “Our simpler portfolio following the demerger of South32 will help us maintain the pace of operational improvement, further supporting cash generation, margins and returns”.