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Mining

BHP Billiton cuts full year copper production guidance after plant outages hurt volumes

BHP said the disposal of its US onshore business is on track to be completed at the end of October and it expects to return net proceeds to shareholders

BHP Billiton plc (LON:BLT) cut its copper production forecast for the year after plant outages hurt volumes in the quarter ended September 30.

The mining giant lowered its full-year guidance by 3% to between 1.62mln and 1.70mln tonnes of copper output.

BHP left its production guidance unchanged for petroleum, iron ore, metallurgical coal and energy coal.

READ: BHP Billiton unveils plan to chop its name in half as next step in miner’s restructuring

In the quarter, copper production edged up 1% to 409,000 tonnes as higher volumes at the Escondida mine in Chile offset the impact of planned maintenance and a fire at the Spence operations in the nation and an acid plant outage at Olympic Dam in Australia.

Iron ore output grew 10% to 61mln tonnes, supported by record production at the Jimblebar min in Australia.

Metallurgical coal declined 2% to 10mln tonnes due to the impact of planned maintenance across its port and mine operations in Australia.

Petroleum production dipped 1% to 33mln barrels of oil equivalent (boe) with crude oil down 7% to 14mln boe due to natural field decline across the portfolio and a 70-day planned dry dock maintenance at the Pyrenees in Australia. Natural gas production increased 5% to 112bn standard cubic feet of gas, reflecting increased tax barrels at Trinidad and Tobago.

BHP said the disposal of its US onshore business is on track to be completed at the end of October and it expects to return net proceeds to shareholders.

The group completed the disposal of its Fayetteville onshore US gas assets to a wholly-owned subsidiary of Merit Energy Company in September.

The company is selling the rest of its US onshore oil and gas assets, including interests in the Eagle Ford, Haynesville and Permian Onshore operations, to BP PLC (LON:BP).

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