BHP Billiton Ltd. (BHP), the world’s largest mining company, said third-quarter iron ore production rose 14 percent as it expands its mines and port in Australia, while warning that strikes severely depleted coal stocks.

 

Output of the steelmaking raw material, its biggest earning unit, was 37.9 million metric tons in the three months to March 31, compared with 33.2 million tons a year earlier, the Melbourne-based company said today in a statement. That compares with the median estimate of 37.3 million tons from four analysts compiled by Bloomberg.

 

BHP and Rio Tinto Group (RIO), which yesterday reported quarterly iron ore output that missed expectations, are expanding production of the raw material to keep pace with Chinese demand. Steel production in China, the biggest producer, hit a record last month as new plants raised output amid higher prices, the National Bureau of Statistics said.

 

“Iron ore is obviously positive just through the sheer drive to develop that particular commodity,” said David Lennox, resource analyst at Fat Prophets. “Their key iron ore division especially is running flat out.”

 

Shares in BHP closed 0.5 percent weaker yesterday at A$34.15. The production report came before the market opened today. Rio, the second largest iron ore exporter behind Brazil’s Vale SA, reported yesterday a lower-than-expected 9 percent gain in output to 45.6 million tons. （Source: Bloomberg ）