BHP Billiton Copper Output Dips

BHP Billiton, which operates the world biggest copper mine Escondida in Chile, reported a 3 per cent decline in copper output to 389,400t from 403,300t in the first fiscal quarter ended September 30.

BHP said that group production grew 9 per cent year-on-year, with eight global operational highs across four commodities, the company said in its latest production report.

Output at Escondida mine, which BHP operates with a 57.5 per cent stake, amounted to 199,400t of copper in concentrate and 69,300t in cathodes – decreasing 2.8 per cent and 5.3 per cent, respectively.

Figures for Escondida include 100 per cent of mine production instead of the equity interest previously reported.

The company's other Chilean copper asset, the Pampa Norte division that includes the Spence and Cerro Colorado mines, reported a 28.3 per cent production increase to 69,300t in FQ1, which the company attributed to higher grades and recoveries at Spence.

BHP said that exploration expenditures reached US$79mn in the quarter, and US$58mn of it was expensed. Greenfield mineral exploration focused on advancing copper targets in Chile, Peru and the US.

Average copper grades in FY2015 are expected to remain at a similar level seen in the September quarter, also consistent with the mine plan.

The company also produces copper at the Olympic Dam mine in Australia and Pinto Valley in the US.