BHP Billiton CEO Andrew Mackenzie said the company’s five core businesses – iron ore, coal, copper, potash and petroleum – were continuing to exceed expectations and deliver strong operating performance as the company moved to improve productivity and lower costs to mitigate the impact of subdued commodity prices.

Record production and sales volumes at Queensland Coal for the nine months ended March 2015, reflected the successful ramp-up of the Caval Ridge mine and sustained improvements in truck and wash-plant utilisation across the operations.

Production declined by 13% from the December 2014 quarter as a result of a longwall move at Crinum and wet weather.

Illawarra Coal’s 6.5Mt of record production was caused by maintenance efficiencies supported higher equipment utilisation rates.

Longwall moves at Dendrobium and West Cliff led to a 25% decline in volumes during the March quarter.

Energy coal production was also up 2% to 46MT, although full year guidance is unchanged at 73Mt.

South Africa Energy Coal production increased by 15% and reflected improved equipment utilisation and optimised mine planning, although that was partially offset

This was partially offset by lower production at Cerrejon as a result of drought conditions and the need to manage dust emissions, and lower customer demand for the Navajo coal product.

During the March quarter the 50%-owned BMA Hay Point Stage Three Expansion project loaded first coal during the March 2015 quarter, on revised schedule and budget, and is now substantially complete.

It will increase port capacity from 44Mtpa to 55Mtpa and reduces storm vulnerability.

BHP’s other development project, the 100%-owned Appin Area 9 in Australia is due for completion next year and its 81% complete. It aims to maintain Illawarra Coal’s production capacity with a replacement mining domain and capacity to produce 3.5Mtpa of metallurgical coal.

BHP is also pushing ahead with the demerger of its “non-core” assets into South 32, which will be made up of its Illawarra and South African coal mines as well as a number of aluminium, manganese, nickel, silver, lead and zinc operations.

This will leave BHP to focus on what it calls its five pillars of iron ore, copper, potash, petroleum and some of its other coal assets.