BHP hits record iron ore output amid price surge

BHP Billiton Wednesday said it reached record Australian iron ore production in the last six months of 2016, allowing the world's largest miner to benefit from the recent price surge.

Commodity prices for key metals like iron ore have jumped in recent months after a slump, bolstering producers such as Anglo-Australian BHP.

The firm said its mines in Western Australia produced record volumes of 118 million tonnes in the second-half of last year, up four percent from the same period in 2015.

Iron ore prices surged by 28 percent to US$55 between the two periods, BHP said.

For the December quarter, iron ore output rose nine percent to 60 million tonnes compared to the previous year.

"We have performed well during a period of higher prices, with record iron ore volumes achieved at (Western Australia Iron Ore)," BHP Billiton chief Andrew Mackenzie said in a statement.

"Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation framework have positioned us to maximise shareholder value."

As it ramps up its iron ore production, BHP -- a major player in the oil and gas industry -- has wound back its petroleum output as it deferred developments at onshore US fields on the back of falling prices.

The miner reported a 15 percent decline in total petroleum output to 105.9 million barrels of oil equivalent (MMboe) for the six months to December 31.

BHP added that it was not yet able to provide an update on the financial impact of Brazil's Samarco dam disaster for the half-year to December.

BHP and Vale, which co-own Samarco, said last week they struck a deal with prosecutors to negotiate by June 30 the settlement of a 155 billion reals ($47.5 billion) claim over the fatal mine collapse.

Mine operations have yet to be restarted after the November 2015 tragedy in which 19 people died.

Rio Tinto, the world's second-biggest miner, last week reported a ramp up in iron ore shipments on the back of rising prices.