Rain dampens BHPB coal result
8th Feb 2012
MELBOURNE, Feb 8 – The lingering effects of the early 2011 floods and industrial action, plus geotechnical issues at the Gregory Crinum longwall, impacted BHP Billiton’s metallurgical coal production in the December half year.
The company expresses doubt about the further impact of industrial action on production, sales and unit costs at its vital Queensland Coal business.
Underlying EBIT increased by $85M to $1.5B, lifted by the price increases of 31% for hard coking coal and 20% for weak coking coal which underpinned record profitability at Illawarra Coal (Australia).
Exploration and business development costs rose following approval of the $2.1B (BHP share) Caval Ridge mine development and associated Peak Downs mine expansion which will add 8Mtpa of high quality coking coal capacity. First production is due in 2014 and a subsequent, low cost expansion to 10Mtpa is anticipated.
Energy Coal achieved production records at New South Wales Energy Coal and Cerrejon Coal (Colombia), but production fell at the domestically focused San Juan Coal mine (USA) following an underground fire.
Underlying EBIT increased by $453M to $787M, due to price rises of 22% for export coal and 11% for domestic coal.
The $437M (BHP share) expansion of the world class Cerrejon coal mine will increase export capacity to 40Mtpa with first production in 2013. The third phase expansion of the Newcastle Coal Infrastructure Group’s coal handling facility in Newcastle (Australia) was approved.
First production from the New South Wales Energy Coal RX1 project is expected in the second half of 2012, one year ahead of schedule. The RX1 project will increase run-of-mine thermal coal production by 4Mtpa.
Also in the February 1 - 7, 2012 edition
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- Rediscovering their Moto
- ASIA DESK
- Seeing some light in uranium gloom
- Steeled with renewed optimism
- CENTRAL ASIA
- Coal could power wider search
- COAL
- Farm conundrum grows for NSW miners
- Queensland minnows feel squeeze
- Strategic Cropping Land arrives
- Time to deliver for Cockatoo
- CONSULTING
- Consulting briefs: Itasca, Coffey, Xstract
- EXPLORATION
- Bell focus turns to Nigeria
- FINANCE
- Time to bet on red
- FROM THE CAPITAL
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- GOLD
- It’s an Olympic year: go for gold
- HEAVY METAL
- Heavy metal briefs: Sandvik, Caterpillar
- Komatsu's mining lift
- INTERCEPTS
- Alcoa smelter woes
- Allied moves to douse rumour
- Alpha Natural coal cutback
- AP to buy Patagonia
- Aphrodite scoping positive
- Bannerman secures DFS funds
- Beacon's Barlee boost
- BHPB alumina up
- BHPB profit falls
- Bilbao extension for Minco
- Blackgold posts resource
- Bligh partner talks
- Bokoni rejig
- Brimstone to pay for Penny's
- Centamin backs Nyota
- Chinalco extends Qld copper search
- CMD signs good for Lachlan
- CoAL welcomes Chapudi entry
- Copper One looks to resource
- Coppermoly advances PNG prospects
- Cuesta reports East Wandoan resource
- Downer confirms Karara win
- Dragon to speed work at Kuusamo
- Dugbe Shear hopes rise
- East Coast increases Wolfsberg potential
- ECR welcomes met results
- Eldorado wins independent support
- Exxaro says profit will jump
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- FMG awards software contract
- Franco-Nevada buys into gold complex
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- Gulf ready to pounce
- Gunson looks to advance Coburn
- Harmony sounds higher profit note
- Hastings advances
- Higginsville lift for Alacer
- High grades for Sunrise at Derryginagh
- Hollister near 100,000ozpa
- Horizonte secures Brazil nickel
- Hot rock team formed
- IMX encouraged by Tomahawk results
- Indo completes Rajawali placement
- Iron ore record for giant
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- Kentor to fire up Murchison
- Kibali construction ready
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- La Colorada lifts VANE
- Lake Victoria restarts Tanzania work
- Leopard spots opportunity
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- Mambare promise
- Merger to have sequels
- Mindoro's Pan de Azucar breakthrough
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- Northam profit lift
- OM signs Sarawak power deal
- Optimism rises
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- Palabora profit rises
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- Peak looks for Ngualla control
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- Pilot drilling lifts Black Fire hopes
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- Red Rock's Resource Star support
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- Rustenburg trouble deepens
- SAG repairs boost CGA
- San Gold lifts SGX holding
- Sheffield sets Irwin target
- Silvercorp hits at short sellers
- Talk spurs Jaguar run
- Taruga debuts
- Taruga to make quick start
- Thiess wins more BHPB work
- Vane points to porphyry copper
- Wah clears to Brockman
- Waratah starts Youkou drilling
- Western Desert builds DSO base
- Xstrata posts $US5.8B profit
- Yeneena funding looking good
- Yuinmery resource in sight
- MINING
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- MINING INTELLIGENCE
- ASIC, I fear it is now up to you
- MINING IT
- CAE Mining revenue up
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- IT notebook: FEI, Itasca, Mincom
- PEOPLE
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- PROJECT WATCH
- Nena edges ahead
