Boom stretches BHP Billiton

BHP Billiton a decline in production at many of its operations during the first quarter of 2007-08, as the world's largest minor strains to meet with China led by surging demand for raw materials. The resources giant reported record quarterly production of iron ore, but the market, the collection is suffering "the production of stress" has been the decline in stocks in early trading. BHP (bhp.ASX: Quote, News) said in its quarterly report that the production of iron ore output hit a record 25.9 million tonnes in the first quarter, up 7 percent over the same period l last year, but only slightly less bad than the three months June. BHP (bhp.ASX: Quote, News) warned that the expansion of its operations in West Australian iron ore had affected the work of this quarter and will continue to do so for the next two quarters. Copper-the largest contributor to BHP-income reached 307800 tonnes, up 23 percent year-on-year but down 10 percent on any quarter of 2006-07. To lead, zinc, si! lver, uranium oxide, nickel, manganese and coal production were also lower in the three months to September 30, compared with the previous quarter. Oil and aluminum production has been stable, while the elongation of diamonds rose 12 percent. BHP share plunged 65c to an intraday low of $ 45.27 following the report, but later recovered at the end of the day 8c stronger at $ 46. Ord Minnett senior resources analyst Peter Arden said the market was disappointed by the lack of production operations in several BHP. "BHP designate of a large number of operations, and they are all really works hard to try to meet schedules incredibly pressures to deliver oil and minerals as China, India and other countries want," he said. "We are seeing the cumulative effect of these operations running for much, much more time they have ever really intended for the pain and a little tread." In other developments, BHP will take its battle for third hinder use of its railway lines, Western Australia ! to the High Court. In the last chapter of his long-running dis! pute wit h Fortescue Metals, BHP yesterday filed an application for leave to appeal to the High Court. Earlier this month, the Federal Court ruled that the BHP rail lines are not part of the production process, which paves the way for the reticulated to be declared open to third parties access to the Trade Practices Act. Meanwhile, BHP of 50 per cent owned Stybarrow oil and gas project in Western Australia now expects start of production at the end of 2007, earlier than its previous forecasts for above all else quarter of 2008. Mr. Arden said that the market should be prepared for much of the "production of stress" in the resources sector, the demand showing no sign of letting up. News.com.au master card gift card
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