Mining giant BHP has warned of cost pressures and uncertain international economic conditions in the year ahead.
After a strong final three months of the 2022/23 financial year, BHP released an operational update that included annual records at Western Australia iron ore (WAIO), Olympic Dam in South Australia and Spence in Chile.
Shares in BHP rose 28 cents, or 0.6 per cent, to $44.96 in Thursday's morning trade after it achieved guidance and signalled increased production.
"Inflationary pressures impacted our business in the year, and we remain laser focused on safety and productivity to remain competitive," CEO Mike Henry said.
He said maintaining competitiveness will be crucial at a time when there are "new challenges and opportunities to resource development and global economic volatility".
Prices for copper, iron ore and metallurgical coal products were lower compared with the previous year.
Nickel prices remained stable while thermal coal prices were stronger, predominantly in the first half.
Offsetting the impact of significant wet weather, Queensland coal operations achieved strong underlying performances, including the transition to autonomous fleets at Goonyella Riverside and Daunia.
BHP said the near tripling of top-end royalties by the Queensland government made that state the highest coal-taxing regime in the world.
Given the "negative impact this has on investment economics and the increase in sovereign risk", BHP reiterated it would not be investing in any further growth in Queensland but would retain existing operations.
Mr Henry said BHP's portfolio is geared towards high-quality steel-making and growth in "future-facing commodities", including copper and nickel.
Having offloaded its petroleum business, BHP is also making a push into potash, used in fertilisers, with the Jansen project in Canada ahead of plan.
Jansen's first production is targeted for the end of the 2026 calendar year.
A feasibility study for Jansen Stage 2 is on track to be completed during the 2024 financial year.
WAIO, an integrated system of four processing hubs and five mining hubs connected by more than 1000km of rail, shipped record volumes on better productivity in its supply chain, rail network and car dumpers.
South Flank, Australia's largest new iron ore mine in more than 50 years, completed its deployment of autonomous haul trucks in May and is on track to ramp up to full production in the next 12 months.
Olympic Dam delivered record annual output in copper, gold and silver.
Wrapping recently acquired OZ Minerals into the South Australian copper business is expected to lift production to between 310,000 and 340,000 tonnes in the 2024 financial year.
The financial year was also marked by the deaths of BHP employees Jody Byrne and Nathan Scholz.
"These tragic events underscore the absolute importance of safety and we are resolute in our commitment to eliminating fatalities and serious injuries at BHP," Mr Henry said.
BHP said the financial impact from the Samarco dam failure in Brazil in 2015 is not yet finalised.
Local governor Romeu Zema has said the final settlement for the disaster could reach $US19 billion ($A28 billion).
Financial results will be released on August 22.
