HP Billiton has reported record iron ore and thermal coal production figures for its financial year to 30 June as mining expansion plans continue, creating increased cargo volumes for the Capesize and Panamax bulker fleets.
The Australian mining company reported total annual iron ore volumes of 134.4mt (million tonnes), including a record 35.5mt in the three months between April and June, which represented an eleventh consecutive annual production record.
“West Australian iron ore benefited from the dual tracking of the company’s rail infrastructure, increasing overall system capability,” its full-year production report said.
Thermal coal volumes, or energy coal as BHP calls it, which is used for power generation, reached a record 69.5mt in the 12 months to 30 June, including a record 35.5mt in April–June that was up 14% on the same period of 2010.
By comparison, metallurgical coal production volumes, or coking coal, used in steel making, of 7.9mt between April and June were 27% lower than 10.9mt mined in the same period last
year, after severe flooding hit the country’s eastern states in late 2010 and early 2011.
“The remnant effects of wet weather that persisted for much of the 2011 financial year continued to restrict our Queensland coal business, despite an unrelenting focus on recovery efforts,” the BHP report said.
“While production did improve in the June 2011 quarter, sales remained well below the record
level achieved in the previous corresponding quarter. We continue to expect production, sales and unit costs to be impacted, to some extent, for the remainder of the 2011 calendar year.”
The number of bulk carriers booked by BHP Billiton and reported by brokers to the Baltic Exchange increased between April and June to its highest since the first three months of 2010. BHP was reported to have booked 70 bulkers, up from 40 in the previous quarter, according to Baltic Exchange fixture lists. It was understood to have hired at least 72 bulkers in the first quarter of 2010.