BHP Billiton Iron-Ore Output Surpasses Expectations

   By Rhiannon Hoyle 
 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said iron-ore production surpassed expectations in the year through June, as it forecast another increase in output in the year ahead.

The Anglo-Australian miner Wednesday said total iron-ore production increased 14% to a record 233 million metric tons last fiscal year, above an earlier, upgraded projection of 230 million tons announced in April. BHP, the world's No. 3 exporter of iron ore, forecast another 6% rise in output in the year ahead, to 247 million tons.

BHP operates an expansive network of iron-ore mines, railway and port terminals in Australia's remote northwest, and also has iron-ore interests in Brazil.

The company meanwhile said it expects underlying attributable profit last fiscal half to be weighed by additional charges of between US$350 million and US$650 million. Those charges relate to impairments on assets, including its Cerro Colorado copper mine in Chile, redundancies mostly in its copper business and a reduction in the number of rigs being used within its onshore U.S. petroleum unit.

Earlier this month, BHP announced expectations of a roughly US$2 billion post-tax charge against its onshore U.S. assets.

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