OREANDA-NEWS. UK-Australian resources firm BHP Billiton is on track to meet its 40mn t coking coal production guidance for the 2015-16 fiscal year that ends 30 June, despite a 6pc fall in output in October-December from a year earlier.

BHP Billiton's attributable coking coal production was 10.49mn t in October-December, in line with the 10.45mn t produced during July-September. The company needs to produce 19.07mn t in January-June in order to meet its 40mn t/yr target. The wet season in Queensland can reduce coking coal shipments in January-April.

Production in the latest quarter was supported by record output at the Blackwater, Daunia, Caval Ridge and South Walker Creek mines in the Bowen basin region of Queensland in Australia. But this was offset by a four-week suspension of operations at Broadmeadow after the longwall got stuck underground, and the completion of longwall mining at the Crinum mine.

About 80pc of BHP Billiton's hard coking coal production comes from its 50:50 BHP Mitsubishi Alliance (BMA) joint venture with Japanese trading firm Mitsubishi. BMA is the world's largest supplier of seaborne coking coal. BHP Billiton's share of production from the venture rose to 8.21mn t in October-December from 8.09mn t in July-September. All of BMA's mines are in the Bowen basin.

Most of the remainder of BHP Billiton's hard coking coal production comes from its 80pc stake in the BHP Billiton Mitsui Coal (BMC) joint venture with Japanese trading company Mitsui, which holds the remaining 20pc. BHP Billiton's share of production from this venture fell to 2.19mn t in October-December from 2.34mn t in the previous quarter.

Hard coking coal sales were 7.64mn t in October December, up from 7.02mn t during July-September, while semi-soft coking coal sales fell to 2.7mn t from 3.25mn t over the period, based on a breakdown of sales by product from the combined BMA and BMC mines.

Output from the 1mn t/yr Haju coking coal mine in Kalimantan, Indonesia started in the July-September quarter. The mine produced 15,000t in the period, rising to 87,000t in October-December.