PERTH (miningweekly.com) – Diversified miner BHP Billiton has exceeded its production guidance at its Western Australia iron-ore and Queensland coal divisions during the 2014 financial year.

“Our focus on productivity has resulted in a significant improvement in operating performance at each of our major businesses this year, with a 9% increase in group production and record output at 12 operations,” BHP CEO Andrew Mackenzie said on Wednesday.

“Western Australia iron-ore and Queensland coal annual production exceeded guidance, with both rising by more than 20% as we delivered more tonnes from existing infrastructure and growth projects ahead of schedule.”

BHP’s iron-ore operations delivered its fourteenth consecutive yearly production record, with volumes increasing to 204-million tonnes during the full year, exceeding production expectations by more than 8%. 

The record iron-ore production was underpinned by the early commissioning of the Jimblebar mine, near Newman in the Pilbara, as well as BHP’s productivity agenda, which raised the capacity of its integrated supply chain.

For 2015, total iron-ore production was forecast to increase by 11% to 225-million tonnes.

Metallurgical coal production for the full year ended June reached 45-million tonnes, up 20% on the previous financial year and exceeding full-year expectations.

The Queensland coal operations achieved record production and sales volumes in 2014, supported by a strong performance across all operations, the miner said. This included first production from the Caval Ridge operation, the successful ramp-up of the Duania project, and record production at Peak Downs, Saraji, South Walker Creek and Poitrel.

For 2014, metallurgical coal production was expected to increase by a further 4%, to 47-mililon tonnes.

Meanwhile, energy coal production during the year remained consistent with the levels achieved in 2013, with BHP delivering 73-million tonnes.

Copper production also saw a 2% increase during the year under review, with BHP producing 1.7-million tonnes, as planned.

Mackenzie pointed out that, at the Escondida operation, in Chile, an increase in mill throughput and concentrator use offset copper grade decline, allowing the project to produce 1.2-million tonnes of copper. With further improvements anticipated, the Escondida project was on track to produce around 1.27-million tonnes of copper in 2015.

Record mining rates at the Olympic Dam project, in South Australia, also underpinned an 11% increase in copper production at the site, which produced 184 000 t during the full year.

Copper production for 2015 was expected to increase by 5%, to 1.8-million tonnes.

Meanwhile, Mackenzie noted that BHP’s onshore US business had delivered a 73% increase in petroleum liquids production during the full year.

Petroleum production during the full year increased by 4% to 246-million barrels of oil equivalent, while crude oil, condensate and natural gas liquid production was up 18% in the full year to 106-million barrels of oil equivalent.

For 2015, petroleum production was forecast to increase by 5% to 255-million barrels, while shale liquids volumes would increase to over 17-million barrels of oil equivalent during the same period.

“We expect to maintain strong momentum and remain on track to generate group production growth of 16% over the two years to the end of the 2015 financial year,” Mackenzie said.

“In petroleum, we are investing in our highest-return acreage while a broader improvement in productivity is expected to underpin strong iron-ore, copper and metallurgical coal volumes.”

Mackenzie added that BHP would remain focused on value over volume, as the company prioritized its brownfield development options and considered its next phase of portfolio simplification.