The headlines are reading BHP Billiton beats production records

The headlines are reading BHP Billiton beats production records. This is true. You can download the nine month and third quarter production report here, titled BHP BILLITON PRODUCTION REPORT FOR THE NINE MONTHS ENDED 31 MARCH 2010. Keeping it original down under. OK, some problems for copper and uranium production in Chile and Australia specifically, but some of the other main segments, iron ore, petroleum, nickel, alumina and zinc all reached record production financial year to date. The Petroleum division shunted out 116.41 million barrels of oil equivalent for nine months, 36.84 million barrels for the quarter. That is 17 percent ahead of where they were last March after nine months. YTD in other words.



Copper production for BHP Billiton for the nine months YTD versus the same measurement this time last year is 13 percent lower. As per the release Production for the nine months and quarter ended March 2010 decreased mainly due to the Olympic Dam (Australia) Clark Shaft incident, industrial action at Spence (Chile), and lower grades at Cerro Colorado (Chile) and Antamina (Peru). The cessation of Pinto Valley (USA) sulphide mining also impacted production when compared to the nine months and quarter ended March 2009. This was in part offset by the successful repair of the Escondida (Chile) Laguna Seca SAG mill in the September 2009 quarter.



Iron ore is where it was at for the worlds biggest mining company, as they reported production was higher than the nine months and quarter ended March 2009 due to the successful delivery of growth projects. Western Australia Iron Ore Rapid Growth Project 4 (RGP4) ramp up is progressing well. However, current quarter production was impacted by weather related disruptions and project tie-in activities at Western Australia Iron Ore.



Coal production was impacted by poor weather in Queensland, which included cyclones. Remember the record number of ships waiting off the Queensland coast to collect coal at one of the major ports. So it is not like there was not demand, the weather did not toe the line. Mind you, there are no standards when it comes to weather. Weatherman speak with fork tongue. Except Simon Gear.




The price is lower in Australia though, perhaps for another reason. There is a story doing the rounds that an internal investigation by BHP could reveal some bribe paying by their employees. Yech. Check out the full story via Bloomberg BHP Finds Possible Corruption as SEC Investigates. Never savoury.