SYDNEY, Jan 20 (Reuters) - BHP Billiton, the world's biggest mining company, posted a 4 percent rise in quarterly iron ore output to meet rising demand for industrial raw materials but coal production faces long-term disruptions due to flooding in Australia.
'Queensland Coal (Australia) production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin during the period,' BHP Billiton said, adding output of coal dropped 30 percent versus the previous quarter.
Flooding blamed on rains over the last three months triggered by a La Nina Pacific weather pattern has devastated huge areas of Australia's eastern seaboard, and flooded coalfields and cut of shipment corridors to export coal terminals.
'When combined with disruption to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year,' BHP Billiton said in releasing its fiscal second-quarter production data.
Iron ore is expected to account more than $5 billion in first-half earnings for Melbourne-based BHP Billiton, nearly three times forecast EBIT earnings from coal mining.
Analysts are expecting BHP Billiton to show underlying earnings of around $10 billion for the half-year ended Dec. 31.
Spot iron prices are trading at 8-month peaks and prices for copper, also a BHP staple, are at record highs.
Aluminium production was in line with previous comparable quarters, BHP Billiton data showed.
Aluminum prices, which slumped dramatically during the global recession, rose 11 percent last year -- 5 percent in the December quarter alone -- and are now near a two-year peak.
Rival Rio Tinto on Tuesday also reported record iron ore production after running its mines at peak rates in 2010.
BHP Billiton also warned that permitting delays in the Gulf of Mexico were continuing to impact its petroleum division by causing the deferral of drilling of high-volume production wells.
'Our current expectation is that production volumes for the 2011 financial year will be in line with the 2010 financial year.,' it said.
The company's Australia iron ore shipments rose to an annualised rate of 148 million tonnes a year in the quarter, underscoring a growing global appetite for the steelmaking material, particularly in China and other Asian countries fast industrialising.
'Robust growth in developing economies remains the primary driver of commodity demand and further positive signs are emerging in the United States following the Federal Reserve's ongoing efforts to stimulate the economy,' BHP Billiton said.
Existing supply side constraints on industrial commodities has been further exacerbated by weather-related disruptions in Australia, Colombia, South Africa and elsewhere, according to the company.
(Reporting by James Regan; Editing by Ed Davies) Keywords: BHP/ (jim.regan@thomsonreuters.com)(+612 9373-1814)(Reuters Messaging: jim.regan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Queensland Coal (Australia) production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin during the period,' BHP Billiton said, adding output of coal dropped 30 percent versus the previous quarter.
Flooding blamed on rains over the last three months triggered by a La Nina Pacific weather pattern has devastated huge areas of Australia's eastern seaboard, and flooded coalfields and cut of shipment corridors to export coal terminals.
'When combined with disruption to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year,' BHP Billiton said in releasing its fiscal second-quarter production data.
Iron ore is expected to account more than $5 billion in first-half earnings for Melbourne-based BHP Billiton, nearly three times forecast EBIT earnings from coal mining.
Analysts are expecting BHP Billiton to show underlying earnings of around $10 billion for the half-year ended Dec. 31.
Spot iron prices are trading at 8-month peaks and prices for copper, also a BHP staple, are at record highs.
Aluminium production was in line with previous comparable quarters, BHP Billiton data showed.
Aluminum prices, which slumped dramatically during the global recession, rose 11 percent last year -- 5 percent in the December quarter alone -- and are now near a two-year peak.
Rival Rio Tinto on Tuesday also reported record iron ore production after running its mines at peak rates in 2010.
BHP Billiton also warned that permitting delays in the Gulf of Mexico were continuing to impact its petroleum division by causing the deferral of drilling of high-volume production wells.
'Our current expectation is that production volumes for the 2011 financial year will be in line with the 2010 financial year.,' it said.
The company's Australia iron ore shipments rose to an annualised rate of 148 million tonnes a year in the quarter, underscoring a growing global appetite for the steelmaking material, particularly in China and other Asian countries fast industrialising.
'Robust growth in developing economies remains the primary driver of commodity demand and further positive signs are emerging in the United States following the Federal Reserve's ongoing efforts to stimulate the economy,' BHP Billiton said.
Existing supply side constraints on industrial commodities has been further exacerbated by weather-related disruptions in Australia, Colombia, South Africa and elsewhere, according to the company.
(Reporting by James Regan; Editing by Ed Davies) Keywords: BHP/ (jim.regan@thomsonreuters.com)(+612 9373-1814)(Reuters Messaging: jim.regan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.