Posted in | Coal | Earnings

BHP Billiton's Coal Production Will Be Affected for Next Six Months

BHP Billiton said that its coal mining operations will be impacted due to the heavy rains and floods for the next six months. Production of coal is down to one third of the previous quarter.

In a statement BHP Billiton said that Queensland Coal (Australia) production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin during the period. They also said that the output of coal for the mine dropped 30% versus the previous quarter.

However iron ore output is rising to record levels with a 4% increase in production this quarter. The iron ore demand from China and other Asian countries is driving the current production rate of 144 million tonnes a year for BHP Billiton. The company is barely meeting one tenth of the demand from China alone.

Analysts say that more than $5 billion will come from iron ore for the first half earnings for the Melbourne based company. BHP Billiton is also expected to show underlying earnings of about $10 billion for the half year ending December 31, 2010. While the coal supply and sales may be down due to the floods, iron ore will make fair weather sailing for BHP Billiton.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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