BHP Billiton says its petroleum and iron ore divisions have both achieved annual production records, but the mining giant continues to be cautious about the short-term outlook on the global economy.
The world's biggest resources company said its production of petroleum products rose 15 per cent in fiscal 2010, up 15 per cent on the previous year.
Shortly after the market opened, BHP shares were up 72 cents to 39.02.
With iron ore prices strong amid demand from China, BHP Billiton also said West Australian iron ore achieved its tenth consecutive annual production record.
But the company was cautious about the outlook for the global economy.
"Uncertainty surrounds the near term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels," BHP Billiton said in a statement on Wednesday.
"Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist.
"BHP Billiton sees these measures as a normal continuation of China's economic management policies."
BHP said iron ore production for the year ended June 30 was up nine per cent on the previous year, and up 16 per cent in the fourth quarter compared to the prior corresponding period.
The production boost to iron ore reflected the strong contract prices the company was able to achieve after it abandoned using the old benchmark pricing system.
‘‘Our expectation is that future Western Australia iron ore shipments will be priced on this basis,’’ the miner said.
Metallurgical coal production for the year also rose, up 3 per cent on the prior year, supported by strong demand.
BHP said 34 per cent of metallurgical coal shipments were priced on a shorter term basis for the year, as it moved away from benchmark pricing.
In the final three months of the 2009-10, most of its metallurgical coal was priced on a shorter term basis, the company said.
Energy coal production was steady compared to the prior year.
The impact of an outage at its giant Olympic Dam project in October following problems with a haulage unit impacted on the company’s production of some commodities.
Olympic Dam in South Australia is the world’s largest uranium deposit, fourth largest remaining copper deposit and fifth largest gold deposit.
Copper production was down 11 per cent on the previous year, while uranium production fell 43 per cent and gold fell 19 per cent.
Production of alumina was up nine per cent for the year despite an unplanned interruption of ship unloading capabilities at its 36 per cent owned Alumar refinery in Brazil.
Aluminium output was one per cent higher.A quarterly production record was recorded for manganese alloy in the final quarter of 2009-10.
Nickel production rose 25 per cent in the year to June 30, following a major furnace rebuild to its Kalgoorlie smelter in the prior year.
AAP