Red metal’s rise leaves BHP in black

Australian-based resource giant Broken Hill Proprietary (BHP) experienced a jump in sales and other revenues for the 6-month period ended Nov. 1, 1994. The 10% rise was in part due to the improved performance of the company’s minerals division.

Higher copper prices, as well as increased shipments of the red metal from Chile and iron ore from Australia, helped the division post a record profit of A$486 million, up almost 87% from the same period in 1993. During the six months, copper traded at an average price of US$1.14 per lb. and reached a 4-year high of US$1.35, compared with US82 cents per lb. and a high of US72-91 cents in the previous year.

Strong consumer demand for copper contributed most to the higher profits. Following the expansion of the Escondida mine and mill in Chile, copper shipments rose above the level experienced in the same period in 1993. (A milestone was reached as Escondida yielded its first cathode copper.) Record shipments of iron ore followed the startup of the Yarrie mine in Western Australia, and shipments were enhanced as a result of increased demand for ore from the Yandi mine in the same region.

The minerals group also produces coal and manganese, both of which experienced a drop in price over the period. Other divisions include steel, petroleum and service companies.