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Cost blowouts at two of BHP Billiton's largest oil and gas projects in the United States have taken the gloss off another record performance by the major miner.
The world's largest miner said yesterday costs at the Atlantis South project and Neptune project in the US had increased.
BHP Billiton, which holds a 44 per cent stake in Atlantis South, said its share of the project cost had jumped to US$1.630 billion ($2.1 billion), from US$1.5 billion.
The company's share of costs at its 35 per cent-held Neptune project increased to US$405 million, up from US$300 million.
BHP Billiton also revised the start-up date for Neptune, with first production expected in the first quarter of next year, rather than at the end of the year.
The company delivered record iron ore production during the three months ended September 30, as a number of BHP Billiton's individual operations achieved record output.
BHP Billiton produced 25.867 million tonnes of iron ore in the quarter, up 7 per cent from the corresponding quarter last year.
The result reflected the full ramp-up of its Rapid Growth Project 2 in Western Australia and a record performance at its Samarco project in Brazil.
BHP Billiton has flagged plans to increase its iron ore output to 300 million tonnes by 2015, to meet increasing demand from China.
Copper output climbed 23 per cent in the quarter to 307,800 tonnes, due to the continuing ramp-up of the Escondida sulphide leach and Spence projects in Chile.
But BHP Billiton said production was 10 per cent lower from the June quarter due in part to unplanned smelter maintenance at OlympicDam.
Nickel output dipped 13 per cent to 38,600 tonnes due to scheduled maintenance at its Kalgoorlie Nickel Smelter and Yabulu operations.
Uranium output from BHP Billiton's Olympic Dam increased 18 per cent from the September quarter last year to 933 tonnes.
Output was 6 per cent from the June quarter due to lower grades and scheduled maintenance at Olympic Dam.
Infrastructure constraints continued to hamper BHP Billiton's metallurgical and energy coal operations in Australia.
Metallurgical coal output was 4 per cent higher than last year, but 14 per cent lower from the June quarter.
BHP Billiton said production was affected by planned maintenance and unseasonal wet weather at Queensland Coal.
The company said third party rail and port constraints continue to impact Queensland Coal's sales, with the infrastructure issues "expected to continue in the near term".
Energy coal production across the company's US and Australian operations came in at 19.623 million tonnes, down 4 per cent from last year.
BHP Billiton said third party infrastructure constraints on the east coast of Australia would continue to affect Hunter Valley Coal's export sales.
AAP
