Escondida Copper Output to Fall 5%-10% in 2011 - BHP Billiton

Aug.25, LONDON (Dow Jones)-

Escondida, the world's largest copper mine, is expected to see production decline by some 5% to 10% in the 2011 financial year, mainly due to lower grades, its majority owner BHP Billiton Ltd. (BHP: 65.57 ,0.00 ,0.00%) said Wednesday.

The mine, located in northern Chile, produced 526,020 metric tons of copper in the first half 2010, a 1% increase from the year-ago period.

BHP Billiton controls and operates Escondida, and has a 57.5% stake in the mine. Anglo-Australian mining company Rio Tinto PLC (RTP: 48.60 ,0.00 ,0.00%) holds 30% of Escondida, with 10% held by a Japanese consortium led by Mitsubishi Corp. (8058.TO), and the remaining 2.5% by International Finance Corp., the private-sector unit of the World Bank.