Half-year iron ore production was up by 4% to 118 million tonnes, or 136Mt on a 100% basis.

Guidance for the 2017 financial year remains unchanged at 228-237Mt, or 265-275Mt on a 100% basis.

It excludes any potential contribution from Samarco in Brazil, which is still subject to approvals before any restart can proceed.

The average realised price for iron ore sales was $US55 per wet metric tonne free-on-board, up 28% from $43/t in the December half of 2016, and from $44/t in the June 2016 half.

Copper production was down by 7% for the half to 712,000 tonnes due to reduced volumes at Olympic Dam, maintenance at Pampa Norte and lower grades at Antamina.

As a result, the company lowered full-year guidance by 2% to 1.62Mt.

The average realised copper price for the half rose by 12% to $2.41 per pound, while the average nickel sales price was 7% higher at $10,581/t.

Production at Nickel West increased by 10% to 40,900t as debottlenecking resulted in record results at the Kwinana refinery.

Metallurgical coal production was up by 1% to 21Mt, while energy coal output rose by 4% to 14Mt.

The average realised price for hard coking coal more than doubled during the period, with weak coking coal up by 82% and thermal coal prices up by 51%.

Morgans analyst Adrian Prendergast said the result was in line with market expectations with no great surprises.

BHP CEO Andrew Mackenzie said the company had performed well during a period of higher prices

“Our simpler organisational structure has freed our assets to focus on what matters most and to deliver safer and more productive operations,” he said.

“Our consistent delivery of operating and capital productivity, and strict adherence to our capital allocation framework have positioned us to maximise shareholder value.”

BHP said its underlying attributable profit for the half, to be reported next month, would include gains related to asset divestments in the range of $150-200 million.

The company expects to record an exceptional item of $164 million relating to the cancellation of the Caroona coal license and the subsequent reimbursement by the New South Wales government.

BHP said it was not in a position to be able to provide an update of the ongoing potential financial impacts of the Samarco dam disaster.

During the half, BHP spent $75 million on exploration, predominantly focused on copper targets.

BHP shares closed at just over $A27 yesterday for the first time since July 2015.