Reuters reported that BHP Billiton and Rio Tinto are set to show solid growth in quarterly iron ore output next week, while BHP's coal production takes a hit from labour disputes and rains, as the miners also grapple with price pressures from a weak global economy.

BHP, the world's biggest miner, is expected to post a sharp drop in coking coal output in the June quarter from the 7.3 million tonnes it produced in the previous three months.

CLSA analyst Hayden Bairstow said that "There's no doubt it'll be a weak number, noting that anything better than that would be a reasonable result based on expectations.”

BHP and Mitsubishi Corp's coal mines in eastern Australia's Bowen Basin are capable of supplying up to a fifth of the world's seaborne-traded coking coal but the joint venture is producing far less and force majeure has been in effect since April due to work stoppages by a third of the workforce.

The coal operations of BHP, which is due to report June quarter production on July 18, also had to struggle with bad weather over the period and saw the closure of the loss-making Norwich Park mine in Queensland.

Source - Reuters

(www.steelguru.com)