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BHP announces stable coal production in 3Q16

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World Coal,

BHP Billiton reported a small year-on-year rise in its metallurgical coal production in 3Q16, although production fell on the previous quarter. Thermal coal production dipped slightly on the previous year – but was up on 2Q16.

The mining giant produced 10.5 million t of metallurgical coal in the three months to 30 September 2016, a rise of 1% on the same period in 2015.

This was achieved on the back of higher wash plant and truck utilisation rates, which offset a number of events in the quarter that negatively impacted production. These included adverse weather conditions, a planned longwall move at Broadmeadow mine and wash plant shutdown at Saraki mine, and lower yield at South Walker Creek.

The company’s thermal coal production fell 4% year-on-year to 6.9 million t on the back of heavy rainfall and mine plan rescheduling in New South Wales. This was only partially offset by a 16% increase in production at the Cerrejon mine in Colombia.

Full-year guidance for the 2017 financial year remains the same for both metallurgical and thermal coal at 44 million t and 30 million t, respectively.

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