The world’s biggest miner, BHP Billiton plc (LON:BLT), has reported a strong second quarter for iron ore production and said it is on track to meet guidance for the metal in the current year.
The FTSE 100-listed mining giant saw a 9% year-on-year rise in iron ore output in Western Australia to 70mln tonnes for the quarter to December 31.
As a result, BHP said, it is maintaining full-year guidance for iron ore production – its most profitable business - at between 265mln and 275mln tonnes.
In the group's quarterly operations review, BHP Billiton chief executive Andrew Mackenzie said: “We have performed well during a period of higher prices, with record iron ore volumes achieved at WAIO (Western Australia Iron Ore."
Over the first half of its current year, BHP said it sold its iron ore for an average price of $55 a tonne compared with $44 in the year-ago period.
Iron ore was one of the best-performing commodities in 2016, with prices rising 81% on a spot basis.
However, BHP saw its copper output fell 7% in the December quarter to 357,000 tonnes, partly due to power outages at its Olympic Dam mine in South Australia, which forced BHP to cut full-year production guidance for that metal by 2% to 1.62mln tonnes.
BHP said Olympic Dam copper production dropped by 30% to 78,000 tonnes.
Nothing on Samarco …
BHP's latest update provided no new news on the likely cost to the company of the settlement over the Samarco dam disaster in Brazil.
The group only said: “For the December 2016 half year, we are not yet in a position to provide an update to the ongoing potential financial impacts on BHP Billiton Brasil of the Samarco dam failure. Any financial impacts will continue to be classified as an exceptional item.”
Last week, BHP Billiton and its Brazilian partner Vale entered into a preliminary agreement with the Federal Prosecutors' Office in Brazil for a settlement of approximately US$47.5bn for the civil claim relating to the tailings dam’s failure in November 2015.
Antofagasta’s copper shines …
In its own quarterly production report released today, BHP’s FTSE 100 peer, Chilean copper miner Antofagasta PLC (LON:ANTO) saw its copper output rise, helping it to deliver a "strong finish" to 2016.
Antofagasta said copper production in 2016 was 13% higher year-on-year at 709,400 tonnes, up from 630,300 tonnes a year earlier, while copper sales rose 9.8% to 698,500 tonnes.
The miner also revealed that its gold production in 2016 was 27% higher year-on-year at 270,900 ounces, but molybdenum production was 30% lower year-on-year at 7,100 ounces.
Antofagasta’s chief executive Ivan Arriagada said: “Looking ahead into 2017, we remain focused on operating and cost efficiencies, and achieving our production targets.
“Although we believe the industry has passed the low point in this commodity cycle, uncertainty persists and we need to build carefully on the solid foundations of our existing operations.”
Fresnillo precious …
And FTSE 100-listed Mexican precious metals miner Fresnillo PLC (LON:FRES) said today that production of all its commodities rose during 2016 as it hit a new annual silver production record and guided toward another increase in silver output this year.
Fresnillo said total silver production in 2016 was 7.1% higher at 50.3mln ounces, while gold production was 23% higher at 935,513 ounces.