BHP Billiton Q1 Iron Ore Output Up 7%, Backs Full-year Outlook

(RTTNews) - BHP Billiton Ltd. (BHP, BHP.AX, BBL, BLT.L), the world's biggest miner, said its iron ore production for the first quarter rose 7 percent year-over-year to a record 61.32 million tons. The company affirmed its forecast for fiscal 2016 iron ore production of 247 million tons.

First-quarter production of metallurgical coal, which is used in steel making, was flat with last year at 10 million tons.

Energy coal production was also flat with the prior-year quarter at 8.85 million tons The company backed its energy coal and metallurgical coal production outlook for fiscal 2016 at 40 million tons each.

The miner said its total petroleum production for the quarter fell 4 percent from the year-ago period to 64.5 million barrels of oil equivalent or boe. The company maintained its forecast for 2016 production of 237 MMboe.

However, the miner lowered its petroleum capital expenditure for fiscal 2016 by 6 percent to $2.9 billion from the prior guidance of $3.1 billion.

Copper production for the quarter declined 3 percent to 377,000 tons. The company's total copper production for fiscal 2016 remains unchanged at 1.5 million tons.

BHP Billiton Chief Executive Officer Andrew Mackenzie said, "BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this quarter. In Petroleum, we continue to reduce costs in both our Onshore US and Conventional businesses, and will meet our production targets with US$200 million less capital investment."