Fourth-quarter copper output of BHP Billiton

Tag : iron making
The output of copper and iron of BHP Billiton in the fourth quarter is high in CHina. Fourth-quarter copper output rose 14% versus the comparable yearago period, while iron ore rose 15%, though coal used in steelmaking dropped 18%, BHP said.

Shares in BHP fell as much as 2.2%, or 85 cents, to $38.15.
Production of coals used in power generation was in line with thelast quarter of the previous year.

Overall, annual production rose in 13 commodities despite risingcosts across its operations.

''This was achieved in an environment in which supply disruptionsand input costs pressures are placing challenges on the industryresponse to continued strong global demand for commodities,'' BHPsaid.

Like close rival Rio Tinto, BHP was running its mines andrefineries around the world hard amid high demand in China andacross much of Asia for raw materials.

Rio, the target of an all-share hostile takeover offer by BHP wortharound $US140 billion saw its own output of iron ore aluminium andother industrial staples soar in the last quarter as it too turnedup production, prodded by higher selling prices.

Output of copper from the Escondida mine in Chile, the world'slargest and majority owned by BHP, climbed 4% to 178,200 tonnes inthe last quarter, while cathode production rose 7% to 40,300tonnes, BHP said.

It also warned that Escondida's total output would drop 10-15% inthe 2009 financial year and stay that way in subsequent years dueto lower ore grades.

London Metal Exchange-traded three-month forward aluminium hit anall-time high of $US3380 a tonne this month, while three-monthcopper reached a record $US8940 a tonne. BHP and Rio have alsosecured a near-doubling in contract iron ore prices.

Analysts expect Rio to report a first-half profit of $US4.258billion versus $US3.353 billion last year when it reports on August26, according to Reuters Estimates. BHP's consensus forecast is fora second-half profit of $US6.05 billion, versus $US7.25 billion,when it reports August 21.

BHP chief executive Marius Kloppers has argued combining BHP andRio would lead to billions of dollars in cost savings at minesites, ports and refineries.

Rio chief executive Tom Albanese has countered that the offer of3.4 BHP shares for each Rio share is too cheap given Rio's assetsand growth potential.