BC Iron has said that it has reported a record production at its Nullagine project, which is being operated with joint-venture partner Fortescue, even after heavy rains in the region.

The Nullagine Joint Venture project, which is located in Pilbara region of Western Australia, recorded an increase of 12 per cent in iron ore shipment to 1.6 million metric tonnes during the quarter till June compared to the same quarter of the previous year. The project has shipped 8.8 million metric tonnes of iron ore since it began operations in February 2011 and estimates shows that it would cross the 10 million metric tonne milestone during the coming quarter till September, 2013.

BC Iron managing director Morgan Ball said that the decision by the company to acquire an additional 25 per cent of the project from Fortescue to increase its total holding to 75 per cent helped boost growth at the site.

"It is pleasing to report a record quarterly operating cash flow of $85 million which, notwithstanding the prepayment impact, reflects the strong quarter we had despite a volatile price environment and unseasonably wet weather," he said.

The company had a cash flow of $85 million for the June quarter and the company also benefitted from weaker Australian dollar allowing it to pay more of its debt repayments.