LONDON (ShareCast) - (Sharecast News) - Mining giant BHP reported record iron ore and copper production across the first nine months of its financial year, but warned of the impact that a trade war could have on demand.
While trade tariffs would only have a "limited direct impact" on the business, BHP chief executive Mike Henry said the implication of slower economic growth and a fragmented trading environment "could be more significant".

"China's ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook," Henry said in an update to the market on Thursday.

"In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with tier one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle."

The comments came as BHP reported a 10% year-on-year increase in copper output over the third quarter ended 31 March to 513,200 tonnes. Total production for the first three quarters combined was also up 10% at 1.5m tonnes, driven by a 20% increase at its Escondida project and strong underlying performances across all other operated copper assets.

Iron order output was flat for the quarter at 61.8m tonnes, but rose 1% over the financial year to date to a record 192.6m.

Full-year guidance across copper and iron ore was unchanged, though certain projects - Escondida, Pampa Norte and Samarco - should deliver production at the upper half of guidance ranges.

Volumes in both steelmaking coal and energy coal were lower than last year, though full-year guidance has been maintained for steelmaking coal and energy coal output should hit the upper half of expectations, BHP said.

London-listed shares of BHP were down 0.2% at 1,7434p by 1250 GMT.

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