Metallurgical coal production for the quarter of 8.5Mt was in line with both the December and March 2003 quarters.

 

Queensland coal production of 7.1Mt was in line with the December and March 2003 periods, while Illawarra Coal in New South Wales production of 1.5Mt was in line with the December 2003 quarter and 4% lower than the March 2003 quarter.

 

BHPB said the decrease at Illawarra reflects difficult mining conditions at the West Cliff colliery.

 

Energy coal production for the March 2004 quarter was 21.3Mt, 8% higher than the March 2003 quarter. The increase was mainly due to higher production at Cerrejon Coal in Colombia, New Mexico Coal's San Juan mine in the United States, and the ramp up at Mount Arthur North in Australia.

 

Production was 7% higher than the December 2003 quarter mainly due to higher production at New Mexico Coal along with lower production at Cerrejon in December due to adverse weather conditions. Production at Ingwe in South Africa was in line with both the March and December 2003 periods.

 

In exploration news, BHP Billiton said construction activities associated with surface facilities, ventilation shaft, washery upgrade and Kemira Valley Rail Coal Loading facilities have been completed and successfully commissioned at the Dendrobium mine.

 

Construction activities associated with the thermal drier were well underway, with the majority of the project’s remaining work is related to the underground drivage required to install and commission the longwall.

 

The company said difficulties had been experienced with underground mining conditions during the quarter, slowing development rates. One mining unit has passed through this zone and is again producing at above expected rates.

 

BHP Billiton anticipated the other two units will have passed through this zone before the end of May 2004 at which time the project costs will be reviewed. Longwall commencement has been slated for mid- 2005.