Australian mining giant BHP posts higher iron, coal output

Australian miners BHP Billiton released their second half of 2016 production report on Wednesday, announcing a strong uptick in iron and metallurgical coal production, with reduced volumes in petroleum, thermal coal, and copper.

The mining giant attributes the poor showing in its petroleum concerns, with production falling 15 percent, to cutbacks it made in their U.S.-based interests.

BHP maintains their 2017 guidance of 200 to 210 million barrels of oil equivalent, however, while confirming plans to invest 1.4 billion U.S. dollars in petroleum capital expenditure in the next year.

Copper production was also down sharply for the mining giant, with a 7 percent fall, due to disruptions at their Olympic Dam site in South Australia, maintenance work undertaken at Pampa Norte, and lower copper grades at Antamina.

BHP expects their 2017 copper production to be 2 percent below previous guidance, at 1.62 million tons.

There were positives, with iron ore production up 4 percent on the back of record production out of their Western Australia Iron Ore operations, and production on metallurgical coal beat guidance by 1 percent.

In a statement, BHP CEO Andrew McKenzie said the company had "performed well" with commodity prices fueling the surge.

McKenzie looked forward to gains in the petroleum sector noting "our onshore U.S. gas hedging program will also be expanded to secure attractive returns."

BHP Billiton will release their financial results for the second half of 2016 on Feb. 21, 2017. Endit