Nmdc's Iron Ore Sales Up 8% In April-September 2013

21-Oct-2013

The quarterly result is the first to contain production from BHP's Jimblebar mine expansion project in Western Australia's Pilbara region.

Overall iron ore output was up 2 per cent on the previous quarter, and 23 per cent higher than during the same period last year.

BHP's iron ore production is ramping up as it pours billions of dollars into expanding its Australian mines.

The company has impressed the market by increasing its full year production target to 212 million tonnes from 207 million tonnes.

BHP Billion chief executive Andrew MacKenzie says increases will be reflected in the company's upcoming financial results.

"In this financial year completed transactions have already delivered proceeds of US$2.2 billion, further strengthening our solid balance sheet," he said in a statement to the share market.

"With strong production growth and our overriding commitment to substantially increase free cash flow, we are well positioned to grow returns to our shareholders.”

The result comes after iron ore miners Forescue Metals and Rio Tinto released strong production reports last week.

UBS analyst Glyn Lawcock believes the big iron ore miners will continue to hire new workers in Western Australia, but the pace of jobs growth will drop.

"If I look at WA, BHP, Rio, Fortescue, they're continuing to invest but they're also trying to do it with less people," said.

"So there will be more employment as they ramp up their volume - you can't grow your business without adding additional people ... but I think the pace of work has clearly slowed."

Source:- abc.net.au

Mr Lawcock says copper was the only division that underperformed in the quarter.

Its share price surged ahead after the announcement.