Australia’s BHP Billiton says that its Western Australia iron ore production increased to a record level after 9 months of its financial year ending 31 March. The company estimates that it will increase iron ore output by 13% year-on-year in FY 2015, it says in its nine months production report monitored by Kallanish.

Western Australia iron ore production increased by 16% to a record 172 million tonnes (100% basis) in the 9 months to 31 March. This was due to the successful ramp-up of Jimblebar and continued improvements in the performance of its integrated supply chain, BHP says. Iron ore output grew quarter-on-quarter during Q3 FY15, Kallanish observes. Samarco production year-to-date increased by 37% to a record 22mt (100% basis) as the fourth pellet plant reached full capacity during the period. Quarterly production of 59.0mt was 5% up on Q2 FY15.

In its full year production guidance BHP estimates that its FY 2015 output will be 230mt, a 13% increase on FY2014. This is 2% higher than its previous guidance. Unit cash cost excluding freight and royalties is now below $20/tonne, the miner confirms.

“In iron ore, our focus remains on producing at the lowest possible cost with Western Australia Iron Ore unit costs now below $20/tonne as we continue to improve productivity”, says ceo Andrew Mackenzie.  In an apparent sideswipe at recent criticism of the iron ore majors strategy by the prime minister of Western Australia, the ceo adds “…we acted swiftly to bring on new iron ore capacity at some of the lowest costs globally, generating long-term value for shareholders, the government and communities which would otherwise have been lost to overseas competitors”.

Further growth in supply chain capacity to 270 million tonnes/year (100% basis) is expected to be achieved without the need for additional fixed plant investment. BHP says. The potential of its installed infrastructure continues to exceed expectations and as a result BHP is deferring the Inner Harbour Debottlenecking project. While this will lead to a slower path to system capacity of 290m t/y, it will come at a lower capital cost, the miner adds.