BHP sees copper output at upper end; Signs China iron ore deal

(Sharecast News) - Australian mining giant BHP said it expected annual copper production to be in the upper half of its guidance range and also confirmed an iron-ore supply deal with China. The company is forecasting copper production in the year to June to be in the upper half of its 1.9 million to 2.0 million metric tonnes range. Third-quarter copper output fell 3% compared with the previous three months and 7% lower year on year.

BHP also said it has completed contract talks with China's state-owned iron-ore buyer after months of talks but did not provide further details.

The deal ends a monthslong standoff between the world's biggest miner and the world's largest iron-ore buyer that has clouded the market for the steelmaking ingredient since September.

Chief executive Mike Henry, who will be succeeded by the group's Americas boss Brandon Craig in July, said the miner was well positioned to handle market volatility amid conflict in the Middle East.

"Our centralised procurement capability and our low-cost operations have positioned us advantageously in the face of industry wide pressure on the cost of energy and consumables as a result of the conflict in the Middle East," he said.

Reporting by Frank Prenesti for Sharecast.com