Billiton mines at high pace despite commodity rout

Lower price of commodities, unlikely to bring supply shortages as BHP Billiton, largest mining company in the world is increases production moving into 2015. Its quarterly production report showed rise in production in three of its 4 pillar commodities.

Key highlights -

• Group production is up 9%, though only iron ore production is expected to move up in next 12 months.
  
  
• Billiton's production from Western Australia's iron ore operation rose to 254 million tons and it is expected to grow to 270 million tons in current financial Year. Billiton is expected to increase production further to 290 million tons over time.
  
  
• Metallurgical coal production grew by 13% in last financial year and in FY15 it is up by 25%. However production is expected to slip by 2% in next 12 months.
  
  
• Zinc production is up by 24% in FY15 whereas petroleum products are up by 4% in FY15, though it is expected to drop by 7% this year.

Some production drops were also registered.

• Copper is the only pillar commodity that saw production drop by 1% to 1.7 million tons. BHP is expecting production to decline by 12% in next 12 months.

• Aluminum production was down 14 per cent, silver was down 10 per cent and nickel was down 9 per cent.

As of now supply shortage is not large enough to turn around commodity prices.