Billiton ups iron ore output but uncertain over growth
MINING giant BHP Billiton reported a 16 per cent jump in quarterly iron ore production yesterday, but voiced caution over the short-term outlook for commodities markets.
“Uncertainty surrounds the near-term prospects for growth in the developed world as governments adjust fiscal policies,” BHP Billiton said in its June quarter production report.
“Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist.”
Copper output dropped five per cent from a year earlier. Billiton said its Olympic Dam mine in Australia will return to full production soon after a mining accident in October cut output by 80 per cent.
Petroleum set a third consecutive production record, mostly due to projects in the Gulf of Mexico which are now suspended. Shares closed 2.5 per cent up at £19.20.