BHP reports fall in copper, nickel and aluminium output

BHP Billiton, the world’s largest miner, has reported a drop in copper production for the third quarter of 2007. Output of the metal fell by 8% year-on-year, to 328,900 tonnes.

The group attributed the decline to lower grades at its Escondida mine in Chile and disruption of production at its Olympic Dam mine in South Australia.

During the quarter, industrial disputes and adverse weather conditions also reduced output of nickel 6% year-on-year.

While alumina output rose 1% year-on-year, aluminium production fell 4%, to 318,000 tonnes, as a result of power rationing in South Africa.

The group continues in its pursuit of Rio Tinto with BHP’s chief executive, Marius Kloppers, recently speaking publicly on Rio’s underperformance and flawed growth prospects.

Last year, BHP launched a hostile $147 billion all-share bid for Rio. Tom Albanese, Rio’s chief executive, rejected the offer on the basis that it undervalued the business.

BHP wants to combine Rio’s mining and metal processing operations with its own.

The move would leave much of the world’s supply of iron ore, copper, aluminium and other commodities in the hands of a single supplier.