Half the 32.45 million tonnes of iron ore BHP produced from mines in Australia and Brazil in the quarter went to China, where steel mills have shown a preference for imported rather than domestic ore, because it contains more iron. Official data due out on Thursday is expected to show China returned to double-digit economic growth in the fourth quarter - good news for BHP Billiton as it would reflect healthy underlying demand for energy and resources by its top customer.
BHP Billiton's production of iron ore, the main material used to manufacture steel, leapt 11 percent in the quarter from a year earlier, mirroring strong production data from rivals Rio Tinto and Vale. BHP Billiton is third-largest of the three major producers.
By tapping new deposits in Australia's rich Pilbara iron belt as part of a multi-year "rapid growth project", BHP Billiton's iron ore production is earmarked to grow 36 percent to 155 million tonnes this year and a further 50 million by end-2011.