David Stringer
(Bloomberg) — BHP Billiton Ltd.’s third-quarter iron ore output rose a better-than-expected 17 percent as the world’s biggest mining company reduces the cost of expansion. 
Total output from Australia rose to 64.4 million metric tons in the three months through March, from 54.8 million tons a year earlier, BHP said today in a statement. That beat the 62.8 million tons median estimate of three analysts surveyed by Bloomberg.
A project to reduce bottlenecks at Port Hedland will be deferred and it will reach its expansion capacity of 290 million tons a year at a slower rate than previously indicated.
While supply additions by the largest producers and weaker demand growth saw iron prices tumble to a 10-year low this month, BHP Chief Executive Officer Andrew Mackenzie said continuing to raise output would best serve investors.
“Despite the subsequent increase in supply-side competition, these low-cost expansions continue to deliver attractive margins and returns through the cycle,” Mackenzie said in the statement.
London-based Rio Tinto’s first-quarter output rose a less- than-estimated 12 percent as wet weather closed ports in Western Australia, it said yesterday.
Ore with 62 percent content delivered to China’s Qingdao declined 1 percent to $51.04 a dry metric ton on Tuesday, according to Metal Bulletin Ltd. It fell to $47.08 on April 2, the lowest since 2005.
Copper output rose to 460,000 from 413,900 tons a year earlier, beating the 424,500 tons median estimate among four analysts surveyed by Bloomberg.
