The company’s iron ore division produced 61.3 million tonnes, up 2% on the June quarter and up 7% over the same period of last year.

Guidance remains at 247Mt for the 2016 financial year.

Western Australian Iron Ore (WAIO) production jumped 8% to a record 67Mt on a 100% basis thanks to the ramp-up of Jimblebar and improved ore-handling plant utilisation at Newman.

WAIO also achieved record sales of 67Mt.

Production at WAIO is expected to rise to 270Mt this year on a 100% basis.

BHP said it had started work on the installation of a new primary crusher and additional conveying capacity at Jimblebar, with the work sitting inside the company’s average annual sustaining capital expenditure of $US5 per tonne.

The additional capacity and productivity improvements will see the company’s Pilbara operations reach 290Mt per annum “over time”.

In copper, expected lower grades at Escondida was offset by a strong operating performance across the division.

Copper production was 377,000t for the quarter, down 13% on June and down 3% on last year.

Guidance remains unchanged at 1.3Mt.

Petroleum production was slightly down due to US development deferrals, while the company cut its planned FY16 capital expenditure for the division by $200 million to $2.9 billion.

Metallurgical and energy coal production of 10Mt each was flat year-on-year.

“BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this quarter,” BHP CEO Andrew Mackenzie said.

“We successfully acquired prospective oil acreage in Western Australia and the Western Gulf of Mexico and will continue to invest through the cycle to create value for shareholders.”

Morgans analyst Adrian Prendergast said copper, petroleum and iron ore production was above his forecasts, while coal was in line.

“A strong operational result kicks off a good start to what is expected to be a tough year (lower year-on-year volumes and weak commodity prices persisting),” he said this morning.

BHP has four major projects under development in petroleum, copper and potash with combined capital costs of $7 billion.

Shares in BHP rose 1% to $A24.225.