BHP Billiton Ltd., the world's biggest mining company, said third-quarter copper, iron ore and nickel output rose, taking it toward record annual production of its biggest mineral products.
Copper output climbed 22 percent to 357,600 tons in the three months ended March 31, from 293,600 tons a year earlier, Melbourne-based BHP said today in a statement. Petroleum product output rose 6 percent, making the first increase in six quarters as it sold more natural gas.
Production of seven of BHP's 19 commodities soared to all time highs in the first nine months as the price of iron ore climbed to a record and copper nears a high on rising imports by China. Iron ore output would have been higher if not for cyclones that swept Western Australia, BHP said today.
``March is a seasonally weak quarter due to the weather predominantly, and the report was largely in line with our expectations,'' UBS AG analyst Glyn Lawcock said in a note to clients. ``Oil and gas were generally ahead of our expectations.''
Shares of BHP Billiton rose as much as 35 cents, or 1.2 percent, to A$30.35 and traded at A$30.19 at 12:26 p.m. in Sydney. They have risen 19 percent this year, more than double the 9.1 percent gain in the benchmark S&P/ASX 200 Index.
Copper and base metals were BHP's largest profit contributor in the six months ended Dec. 31. They were followed by the petroleum unit. Stainless steel materials, which includes nickel and cobalt, was the third-largest contributor, and iron ore the fourth-largest.
Magma Restart
China's economy grew 11.1 percent in the first quarter from a year ago, beating analysts' expectations. The world's most populous nation more than doubled imports of copper in March to meet demand from the construction industry, according to data by the Beijing-based customs office on April 23.
``Strong customer demand,'' had led to a record nine months production of natural gas, alumina, aluminum, copper, nickel, iron ore and manganese, the company said today.
BHP is spending ``less than $100 million'' to restart the Magma copper project in the U.S., spokeswoman Samantha Evans said today. The project, idle since 1998, will restart in the fourth quarter of 2007, and produce 70,000 tons of contained- copper-in-concentrate a year for four-and-a-half years, she said.
``We're so short of concentrate in the market that they are taking back to the market relatively high-cost production,'' said Peter Rudd, research manager at Carroll, Pike & Piercy Pty, which advises investors managing A$500 million ($413 million).
Steelmaking Materials
Production of iron ore, used to make steel, rose 8 percent to 22.9 million tons, from 21.1 million tons a year ago, for the three months ended March 31. It fell 10 percent from the previous quarter after cyclones swept Western Australia where its mines are located.
Coking coal output climbed 7 percent to 9.1 million tons from 8.5 million tons a year ago. Nickel production advanced 14 percent to 45,800 tons.
``There was a good copper and coking coal production, though iron ore was lower than expectations,'' said Rob Clifford, an analyst at ABN Amro Holding NV, in Melbourne.
BHP is the world's largest exporter of coal for the steel industry and the third-biggest iron ore seller. It is also Australia's largest oil and gas producer.
The company, which last quarter raised expansion costs for two projects, said its Neptune and Stybarrow oil and gas projects are reviewing budgets.
Neptune, in the Gulf of Mexico, has a current budget of $300 million for BHP's 35 percent stake. Stybarrow, in Australia, is 50 percent owned by BHP and was to cost it $300 million.
To contact the reporter on this story: Tan Hwee Ann in Melbourne at hatan@bloomberg.net
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