Mining giant BHP Billiton said a recovery in Indian steelmakers and China would underpin demand for some of Australia’s largest commodity exports, helping to offset slowing growth in the United States, Japan and Europe.
BHP Billiton, Australia’s largest miner, reported that its flagship Western Australian iron ore business hit a record high in the nine months to March, a result that matched the Main competitor Rio Tinto’s, whose exports come from the Pilbara also reached new heights.
BHP Billiton said its full-year output of metallurgical coal, which is used in steelmaking, will fall to the lower end of its guidance because of the highest rainfall in the past 10 years.Credit: Christopher Wright
The miner produced 59.8 million tonnes of iron ore in the three months to March, slightly more than a year earlier but down 11% from a year earlier. The key steelmaking raw material provides more than half of BHP’s revenue and is one of Australia’s biggest exports, adding $134 billion to the country’s coffers last financial year.
Chief executive Mike Henry said a recovery in China and strength in steel manufacturing growth in India were helping to offset a slowdown in the rest of the world. “Recent engagements with customers in China and India have reaffirmed our bullish view on commodity demand,” Henry said.
“Our WA iron ore operations achieved record production and the group’s total copper production rose for nine consecutive months, while metallurgical coal production fell slightly due to notable wet weather,” he said.
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bhp billiton last week Completed $9.6 billion acquisition The acquisition of copper and nickel producer OZ Minerals, its biggest acquisition in more than a decade, came after shareholders approved a scheme of arrangement that should take control on May 2.
The acquisition confirms BHP Billiton’s position as one of the world’s largest copper producers and the world’s largest holder of copper resources. “We are now focused on the safe integration of these two operations as we look forward to building an internationally competitive copper operation in South Australia and adding West Musgrave to our nickel options in Western Australia,” Henry said.
The company’s production guidance for iron ore, metallurgical coal and energy coal in FY2023 remains unchanged.
