Australia's second largest miner BHP Billiton has released its production results for the FY 2009, ended June 30, 2009. BHP pointed out that its annual production was solid despite weak and volatile demand conditions and weather-related interruptions.
As per the company's statement, in the FY 2009 BHP Billiton registered a two percent increase year on year in its iron ore production to 114.415 million mt, while in the fourth quarter of FY 2009 the company's iron ore production declined by 10 percent year on year and was down by four percent quarter on quarter to 27.048 million mt.
According to BHP Billion, for the year ended June 2009, 68 percent of its Western Australia iron ore shipments on a wet metric ton basis were based on annually agreed pricing.
Commenting on the quarterly results, BHP said, "Iron ore production in the fourth quarter of FY 2009 was impacted by tie-in activities for Rapid Growth Project 4 (RGP 4) and safety initiatives at the Western Australia Iron Ore operations. As RGP 4 is nearing completion, existing operations will continue to be impacted by the tie-in activities."
"Production volumes of iron ore at Samarco operations in Brazil increased during the fourth quarter of FY 2009 following the restart of the second pellet plant during the previous quarter. Samarco operations is BHP Billiton's 50:50 joint venture with Brazilian mining giant Vale The third pellet plant restarted in early July 2009; however, the continued operation of all three pellet plants will be subject to ongoing assessment to align with demand for the product," BHP added.
Meanwhile, BHP Billiton's FY 2009 metallurgical coal production was increased by three percent year on year to 36.416 million mt. In the fourth quarter of FY 2009, the mining giant registered 9.460 million mt of metallurgical coal production, up by four percent year on year and up by 25 percent quarter on quarter.
"Despite softer market conditions, metallurgical coal production in FY 2009 was slightly above the year-ago period when production was affected by severe flooding. Metallurgical coal production for the last quarter of FY 2009 improved significantly over the previous quarter due to stronger demand conditions, particularly from Asia. Our operations are well positioned to respond to increases in demand," BHP stated.
"The 2009 FY proved to be very challenging, with a significant demand contraction exacerbated by dramatic movements in inventory levels. In the context of this environment, BHP Billiton achieved a solid operational performance, despite making production adjustments across a range of commodities, including metallurgical coal, nickel and manganese," BHP said in its statement.