BHP CEO Andrew Mackenzie called the iron ore performance particularly strong, flagging steady production guidance for the 2014 financial year at 192Mt, despite uncertainties related to the forthcoming wet season.

Some onlookers, however, expressed disappointment in the outcome, with five analysts surveyed by Bloomberg having called for 49.4Mt on the quarter.

Iron ore production on a 100% ownership basis was reported at a record 108Mt for the half year, with output from the mining giant’s Pilbara operations in Western Australia increasing 15.7% year on year to 53.6Mt.

This performance reflected first production from new port blending and rail yard facilities and a 10.7% year-on-year increase in output from the Newman operation to 14.2Mt of iron ore.

BHP also confirmed today that commissioning of two replacement shiploaders in Port Hedland is expected to be completed later this year, increasing supply chain capacity for the region from 260Mt per annum to 270Mtpa.

More broadly, the company reported production progress in its copper division, which increased 6% from the December quarter last year to 429,900 tonnes, as well as in nickel, which produced 9% more than a year ago at 37,800t, despite a suspension of production at the Perseverance mine in WA due to a seismic event.

Copper momentum was spurred by a record half year at the Olympic Dam operation in South Australia as well as a record quarter for Antamina in Peru and a 37% quarter-on-quarter increase in production at Pampa Norte in Chile.

Alumina production for the quarter was 1.3Mt, up 10% compared to last year, with the company citing improvements at the Worsley operation in WA and record production at the Alumar refinery in Brazil.

Metallurgical coal, meanwhile, showed a major improvement, with 11.5Mt produced during the quarter, up 30% from a year ago.

“Our productivity continues to improve and this was most clearly demonstrated by our Queensland coal business, which ran at an annualised rate of 68Mt in the December 2013 quarter,” Mackenzie said.

“Our productivity agenda is in full swing and we expect to carry strong momentum into the second half of the financial year.”

BHP continued its strategy of portfolio simplification, counting proceeds of $US2.2 billion ($A2.5 billion) for the half year to December following the sale of the Pinto Valley and Navajo mines in the US as well as a stake in WA’s Jimblebar operation.

“During the period, six of our major projects delivered first production and our 10 remaining projects, which are largely low risk brownfield expansions, are tracking to plan,” Mackenzie said.

“By maintaining strict financial discipline and increasing internal competition for capital, we intend to further differentiate ourselves by achieving a superior rate of return on incremental investment.

“We also remain committed to actively managing our portfolio value.

“This strategy leaves us well positioned to deliver a substantial increase in free cash flow and higher returns to shareholders.”

The company reported that due to new accounting standards, its taxation expense was expected to be in the range of 31-34% for FY2014.

It includes royalty-related taxation as a proportion of pre-tax profit but excludes the influence of exchange rate movements, adjustments to deferred tax balances associated with the mining tax and the impact of exceptional items.

Shares in BHP were down 1.4% this morning at $A37.42.