Mining Profits...Investing In Industrial Metals

Mining giant BHP Billiton Ltd./Plc. maintained its copper output in the second quarter but said price adjustments to sales would reduce its first-half earnings by $220 million, reflecting a declining world copper price.

BHP Billiton, the world's top miner, said its total copper production was steady at 300,700 tonnes in the three months to December 31, helped by strong contributions from its South American operations.

"Escondida achieved a quarterly production record due to continued ramp-up of the sulphide leach project, which produced 20,700 tonnes for the half-year ended December 2006," it said.

Increased mill runs and richer ore grades contributed to near record half-year and quarterly production at the company's Antamina, Peru, operation, BHP Billiton added.

In contrast, in 2001 BHP Billiton cut production runs in South America to help combat then-depressed copper prices of around $1,650 a tonne.

Copper traded at around $5,775 on Thursday. It hit a record high of $8,800 in May last year as miners struggled to keep pace with demand, but it has retreated in the face of uncertainty over the outlook for demand, forcing BHP Billiton to trim its earnings expectations.