BHP Billiton grows iron ore output by 3% to 238m mt in 2017-2018
Anglo-Australian mining company BHP Billiton has reported a 3% rise in iron ore production, increasing output for copper but a fall for petroleum. The firm said its iron ore mining produced 238 million tonnes in the year to June, up from 231 million last year. Copper output rose 32% thanks to increased production in its Chilean mine but petroleum production fell 8% because of natural field decline. Steelmaking coal production rose 7% while thermal coal production was flat. The company said it was trying to remove bottlenecks in rail and port networks but that there were problems with unloading equipment.
SYDNEY--BHP Billiton Ltd. (BHP.AU) said it produced 3% more iron ore last fiscal year, as its Australian mining operations churned out the commodity at record rates, while the company's output of copper jumped and petroleum fell.

The world's biggest miner by market value on Wednesday reported iron-ore production totaling 238 million metric tons in the year through June. That was up from 231 million tons in the 12 months immediately prior, and at the top end of its 236-238 million-ton forecast range.

The company said its Australian operations hit a record annualized output rate during its fiscal fourth-quarter of 289 million tons, including the share of joint venture partners.

BHP, which runs the world's third-biggest iron ore business by volume, has been lifting exports from Australia's remote Pilbara region aided by a productivity drive that's included increasing equipment utilization and automating trucks and drills. The miner has also been working to remove bottlenecks in its rail and port network and increase capacity at its Jimblebar mine.

Still, problems with the reliability of machinery that unload iron-ore cargoes from its trains led BHP in April to trim its full-year target from 239 million-243 million tons previously.

"Good prices and our culture of continuous improvement give us positive momentum into the 2019 financial year," said Chief Executive Andrew Mackenzie. BHP said group production rose by 8% during the year on a copper-equivalent basis.

BHP said output of copper during the 12-month period surged 32% on the year prior because of rising production at the Escondida mine it manages in Chile. Output from Escondida, the world's biggest copper mine, has risen following an expansion of its processing facilities. Year-earlier production there was also disrupted by a worker strike.

The company's petroleum production slumped by 8% due to natural field decline although, at 192 million barrels of oil equivalent, volumes topped its 180 million-190 million-barrel forecast range.

BHP meantime reported a 7% rise in steelmaking coal output, and flat production of thermal coal, used to generate electricity.

It also said it would likely record a charge of US$440 million in its financial results next month, tied to the 2015 Samarco dam failure in Brazil.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com