BHP has warned of global uncertainty in the months ahead, and slammed the coal tax imposed by Queensland as a barrier to investment in green energy and industry.
"The near tripling of top end royalties by the Queensland government remains a serious concern and threat to investment and jobs in that state," BHP said in a market update on Wednesday.
BHP sees strong long-term demand from global steelmakers for Queensland's high-quality metallurgical coal.
But the mining giant reiterated it was unable to make significant new investments in Queensland "in the absence of fiscal terms that are both competitive and predictable".
BHP said the signing last month of a power deal with Alinta Energy is expected to halve greenhouse gas emissions from the electricity used at its Western Australia iron ore port facilities by the end of 2024.
Becoming the foundation customer of Alinta's solar and battery project in WA, which is expected to be the first large scale renewable plant at Port Hedland, means construction can begin in December.
During the September quarter, BHP also signed an agreement with India's Tata Steel on lower emission steelmaking and announced a partnership with Pan Pacific Copper to reduce emissions from shipping.
But BHP CEO Mike Henry warned of global uncertainty in the short term.
He said it would continue to affect supply chains, energy costs, labour markets and equipment and materials availability.
However, BHP "remains well-positioned" and will benefit from the global mega-trends of decarbonisation and electrification, Mr Henry said.
All production and unit cost guidance remains unchanged for the 2023 financial year, according to the operational update for the three months to September 30.
Shares in BHP were down by 1.3 per cent or 51 cents at $39.12 in early afternoon trade, underperforming a strong market.
RBC Capital Markets analysts said BHP's September quarter was "mixed" with iron ore better than expected despite maintenance work, and copper weaker, while poor weather drove large misses in coal.
NSW energy coal production dropped by 38 per cent to three million tonnes amid more than three times the usual amount of rain, but production of higher quality coal for steelmaking was up on a year earlier.
Copper production was up nine per cent on the same quarter last year, with record production at South Australia's Olympic Dam after a smelter upgrade.
WA iron ore continued to perform strongly, with production up by three per cent on the same period last year.
"The South Flank iron ore ramp-up and the Jansen potash project are tracking well, with work ongoing to bring forward first production from Jansen Stage 1 and accelerate Jansen Stage 2," Mr Henry said.
South Flank in the Pilbara is Australia's largest new iron ore mine in more than 50 years.
Production of nickel - used in electric vehicle batteries and wind turbines - came in above market expectations.
Nickel West production increased by 16 per cent to 21 kilotonnes.
But guidance for the year ahead was unchanged at 80 to 90kt because of planned nickel smelter maintenance in the December quarter.
