The well known Australian BHP Billiton, has recently released its operational review for first six months of Australian FY 16. According to the report, the miner produced 118 MnT iron ore in first half of Australian FY16.
BHP Billiton reduced its iron ore production guidance by 10 MnT for Aus. FY16. Before, the miner announces 247 MnT production guidance, but now, due to suspension of production at Samarco, the miner expects to produce 237 MnT iron ore in Aus. FY16.
On the other hand, the Western Australian Iron Ore (WAIO) output is recorded at 131 MnT in first half of Australian FY16. The output rose by 6% Y-o-Y as its Jimblebar mining hub is running on full capacity. The miner continuous with the production guidance for its WAIO operations for Australian FY16 at 270 MnT. Also, on ramp up of additional capacity at Jimblebar and further efficiency improvement, the miner aims to raise the total capacity to 290 MnT.
Global iron ore prices are under pressure since a year as major iron ore producers continues to expand production, even as demand for iron ore contracts. BHP BIlliton’s average realised prices following index price of the month of shipments in December 2015 quarter was USD 43/MT FOB.
Note: Australian financial year FY16 starts from 01 July’15 and ends on 30 June’16.
Notification for BHP Billiton’s operational review for first six months of Aus. FY16
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