(Adds copper and petroleum production, CEO comments)
Jan 18 (Reuters) - Global miner BHP on Thursday
reported a 3 percent rise in second-quarter iron ore production
year over year and said it expects to meet its full-year target
as prices for the steelmaking ingredient outperform forecasts.
BHP's iron ore output climbed to 72 million tonnes for the
three months ended Dec. 31 versus 70 million tonnes a year ago.
UBS had forecast a figure of 69 million tonnes on a 100
percent basis that includes ore mined on behalf of joint venture
BHP maintained internal guidance that it would mine 275
million-280 million tonnes of iron ore in the fiscal year to
“A strong operating performance in the first half allowed us
to capture the benefit of higher prices,” BHP Chief Executive
Andrew Mackenzie said in the group’s quarterly operations
Earlier this week, rival Rio Tinto
reported shipping a record 90 million tonnes last
The iron ore price stands at around $75 per tonne. However,
uncertainty over Chinese demand has led to forecasts for prices
to fall to between $51 and $64 a tonne as the year progresses.
Spot iron ore last traded below $52 in June 2017.
In other commodities, BHP’s copper output jumped 20 percent
to 429,000 tonnes in the quarter helped by a rise in production
from its Escondida copper mine in Chile.
Petroleum production slipped by 6 percent to 48 million
barrels of oil.
In the closely watched U.S. onshore shale division, the
company said it continued to assess alternatives to exit its
onshore U.S. assets and that it would also continue to explore a
demerger or an initial public offering.
Last month, BHP appointed four investment bankers to help it
sell or a spin off the division, which has proved a disastrous
investment for the company.
(Reporting By Rushil Dutta in Bengaluru; Editing by Cynthia
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