JSE-listed resources firm, BHP Billiton, on Wednesday said production increased 9 percent during the December 2014 half year with records achieved for eight operations and five commodities.

It said the firm was on track to deliver production growth of 16 percent over the two years to the end of the 2015 financial year. Metallurgical coal production increased by 21 percent to 26 Mt in the December 2014 half year as Queensland Coal and Illawarra Coal both achieved record half year volumes.

Western Australia Iron Ore production increased by 15 percent to a record of 124 Mt (100 percent basis) in the
December 2014 half year as the ramp-up of Jimblebar continued and the firm improved the availability utilisation and rate of its integrated supply chain.

Andrew Mackenzie, BHP CEO, said the company’s operational performance over the last six months had been strong. “We are reducing costs and improving both operating and capital productivity across the group faster than originally planned. These improvements will help mitigate some of the impact of lower commodity prices and we remain alert to opportunities to further increase free cash flow,” Mackenzie said.

“In petroleum, we have moved quickly in response to lower prices and will reduce the number of rigs we
operate in our Onshore US business by approximately 40 per cent by the end of this financial year. The
revised drilling program will benefit from significant improvements in drilling and completions efficiency,” he added.