Anglo-Australian mining giant BHP Billiton (LON:BLT) has promised no let-up in its plans to boost iron ore production from Pilbara in Australia.
“In iron ore, our focus remains on producing at the lowest possible cost with Western Australia Iron Ore unit costs now below US$20 per tonne as we continue to improve productivity,” said chief executive Andrew Mackenzie.
Output hit a new record in its latest quarter and is one reason why the iron ore price has slumped to new lows recently.
BHP’s production increased by 16% to a record 188 million tonnes (Mt) in the nine months to Match, with production for the 2015 financial year now expected to be 250Mt, 2% higher than it forecast previously.
The pace seems set to continue with the company saying it can reach 270Mt without further investment and ultimately is aiming for 290Mt.
Petroleum production also rose, by more than 6%, to a record 193mln barrels of oil equivalent (MMboe).
Onshore US liquids volumes were 76% more than in the same period of the previous year, to 40.2 MMboe, despite the company reducing the number of rigs by 35%.
Overall, group production jumped 9% for the nine months to 31 March with records achieved for 10 operations and five commodities.
The company said: “We remain on track to deliver Group production growth of 16% over the two years to the end of the 2015 financial year.”
BHP Billiton chief executive officer, Andrew Mackenzie, said: "Our teams continue to exceed expectations and deliver strong operating performance."
It was not all positive however. Silver production for the nine months to 31 March fell by 8% due to lower ore grades at two mines, while nickel production decreased 9% after an unplanned outage at the Kwinana refinery and lower grades at its Colombian mine Cerro Matoso.
Aluminium was the worst affected, with output falling 15% despite record production at Mozal.
Lower production was due to the end of smelting activities at Bayside and the suspension of potlines II and III at Alamur.
All of these businesses are to be demerged in to new business South32.
A vote on the demerger takes place on 6 May.
Eligible BHP Billiton shareholders will receive one South32 share for every BHP Billiton share held on the applicable record date.