BHP Billiton copper output drops but FY guidance unchanged

BHP Billiton posted a decline in iron ore production in the three months to the end of September, but said it remains on track to meet production targets for the year.

Iron ore output fell 3% on the year to 56m tonnes as improved mine productivity and record volumes at Jimblebar were offset by the impact of planned maintenance and lower opening stockpile levels following the fire at the Mt Whaleback screening plant in June. Nevertheless, the miner left its guidance for iron ore production in 2018 unchanged at 239m to 243m tonnes.

Meanwhile, copper output was up 14% to 404,000 tonnes as increased volumes at Escondida were supported by the start-up of the Los Colorados Extension project and higher average copper grades and throughput.

Chief executive officer Andrew Mackenzie said: "Our performance in the first quarter keeps us on track to deliver seven per cent volume growth in the 2018 financial year.

“We manage the portfolio for value and returns. Our transition to lower-cost, high-return, latent capacity projects is delivering results, with first copper production achieved from the Los Colorados Extension project at Escondida and Olympic Dam's Southern Mining Area during the quarter.”

Mackenzie added that major development work has begun on the recently approved growth projects, Mad Dog Phase 2 and the Spence Growth Option, with both set to become operational as their respective markets in oil and copper rebalance.

At 0900 BST, the shares were down 0.1% to 1,413.50p.