October 19, 2016 12:57:26 PM
SEATTLE (Scrap Monster): Mining major BHP Billiton has announced operational review for the quarter ended September 30th. The total copper production for the quarter has declined by 6%, whereas the iron ore production remained unchanged. The company has kept full year production guidance unchanged. According to the company, the commodities market has given early signs of recovery.
The total copper production during the September 2016 quarter totaled 355 kt, falling by nearly 6% over the previous year. The copper output during Sep 2015 quarter had totaled 378 kt. When compared with June quarter this year, the output declined sharply by 14%. However, the company has kept the guidance for 2017 financial year unchanged at 1.66 Mt, subject to review of the Olympic Dam project on the back of state-wide power outage in South Australia.
Output from Escondida mine during the quarter dropped by 6% during the quarter to 218 kt, mainly on account of lower grade. Quarter-on-quarter, the output fell sharply by 19% on account of lower grade, water availability and planned maintenance during this period. The production guidance for Escondida mines has been kept unchanged at 1,070 kt. The financial year 2018 will see increased utilization of three concentrators, which in turn should add to the company’s copper output.
Improved recoveries at Cerro Colorado resulted in 9% jump in Pampa Norte copper production during the Sep 2016 quarter to 62 kt. The planned maintenance in December 2016 quarter and the suspension of processing activities at Plant 2, which may affect two months production may result in further decline in copper output during Dec 2016 quarter. However, the company has kept the production guidance unchanged. Interestingly, the completion of the Spence Recovery Optimisation (SRO) project may lead to stronger output during second half.
The Olympic Dam copper production plunged heavily by 26% during the quarter to 41 kt. The production guidance of the project is under review. Also, Antamina copper production for the quarter remained more or less flat at 34 kt. The company has kept the guidance for 2017 financial year unchanged at 130 kt.
BHP Billiton’s total iron ore production during the September 2016 quarter remained unchanged at 67 Mt on a 100 percent basis. The Western Australia Iron pre production excluding production from Samarco remained flat. The increased production on account of ramp-up of additional capacity at Jimblebar was offset by lower volumes at Yandi. The installation of the new primary crusher and additional conveying capacity at Jimblebar is expected to be completed in the December 2016 quarter. It should be noted that operations at Samarco continues to remain suspended.
Nickel production during September 2016 quarter dropped to 18.8 kt. However, the company expects the production to surge higher by nearly 10% in the 2017 financial year.
BHP Billiton Chief Executive Officer, Andrew Mackenzie stated that the company has witnessed early signs of market rebalancing during the quarter. The markets are likely to remain steadier during the next 12 to 18 months. The prices of commodities are likely to see significant improvement on account of improved demand situation, Mackenzie added.
