Work on the planned Dendrobium longwall project in the Illawarra continues on schedule and within budget. Development mining at BHP’s San Juan project in Mexico has begun and orders for longwall equipment have been placed with Joy.
Coal production for the quarter ended March 31 jumped 19% to 15Mt from 13.4Mt a year earlier, boosted partly by the acquisition of QCT Resources and increased production at the Blackwater mine and at the New Mexico operation. This increased production offset the reduced output in Queensland from the Crinum and Peak Downs mines, caused by ongoing strike action.
Queensland mines produced 7.9Mt, or 25% more during the quarter, while production for the nine months to March 31 rose 15% to 21.6Mt.
The Illawarra collieries in New South Wales produced 1.6Mt in the quarter (up 12% on the previous March quarter), while production for the nine-month period totaled 4.7Mt.
In Indonesia, BHP’s share of production from the Senakin, Satui and Pentangis mines totaled 2Mt, while nine month production to March was 6.2Mt.
USA production from the Navajo and San Juan mines totaled 4Mt for the March quarter, while nine month production amounted to 11Mt.
Globablly, BHP’s share of coal shipments for the quarter was up 13% at 15.1Mt from 13.4Mt in the March 2000 quarter. This brought shipments for the latest nine months to almost 44Mt, up 12% on a year earlier. Of the 15.1Mt shipped during the quarter, 8.8Mt was metallurgical coal, and 6.2Mt was thermal. Of the 44Mt for the nine months, 24Mt was metallurgical and 20Mt was thermal.
At the San Juan underground project in Mexico development mining began in mid-February. By the end of the March 2001 quarter, mining development had advanced 1,610 meters. Thirty-nine permanent underground employees were hired, bringing the manning total to 73 out of a planned underground work force of 200.
Earthworks at the main portal and ventilation shaft areas have begun and the changehouse was completed. The shaft pressure grouting was also completed and the service boreholes and the highwall stabilization contracts were awarded and work commenced. The ventilation shaft contract was awarded and mobilization commenced. The major order for the longwall equipment was placed with Joy Mining Machinery during early March for delivery by the end of December.
At the Goonyella mine (BHP 52.1% interest), additional large diameter drilling, pilot plant washing and coke oven testing was conducted. BHP said documenting the exploration mining phase was continuing as part of the feasibility study with a view to completing these aspects of the Study by September.
At BHP’s 100% Dendrobium project in the Illawarra, feasibility scope of work continued. This included additional exploration, finalising technical studies in mine design covering strata control, ventilation, gas drainage and hydrology. Feasibility engineering studies are largely complete, covering underground equipment, stockpile, rail transport, processing and surface infrastructure aspects.
BHP has received tenders for the major scopes of work which are currently being evaluated. The Environmental Impact Statement (EIS) and Development Application were submitted to the NSW Department of Urban Affairs and Planning on March 20. Work to date is on schedule and within budget allocations the company said.
BHP Limited also announced a third quarter profit of $27 million for the group. The after tax result was an improvement of $73 million compared to a $46 million loss for the same period ended 31 March 2000. The BHP Board also announced a fully franked dividend of 26 cents per share to be paid on 2 July 2001.
