BHP Billiton has cut its full-year copper production guidance and outlined plans to sell some of its US shale acreage.
The mining giant on Wednesday reported a 44 per cent drop in third quarter copper production largely due to industrial action at its Escondida joint venture in northern Chile.
Total copper production for the nine months to March 31 was down 20 per cent on the same period a year ago and BHP now expects to produce between 1.33 million and 1.36 million tonnes for the full year - compared to the 1.62 million to 1.66 million tonnes forecast in January.
Nonetheless, BHP shares rose after chief executive Andrew Mackenzie confirmed plans to further streamline the company by selling acreage in the Eagle Ford shale region in the southern US state of Arkansas.
"Everything we do at BHP Billiton is designed to create value for all of our shareholders, today and for the long term," Mr Mackenzie said.
"Plans to monetise a portion of our non-core acreage for value, such as parts of the southern Hawkville (field), are underway."
BHP shares were 22 cents, or 0.9 per cent, higher at $24.16 at 1206 AEST.
Coking coal production for both the March quarter and the year-to-date were both up two per cent.
But BHP still cut its coking coal production guidance from 44 million tonnes to between 39 million and 41 million due to the damage inflicted on Queensland rail infrastructure by Cyclone Debbie.
Nine-month energy coal production was steady at 21 million tonnes, while iron ore production for the same period was up three per cent to a record 171 million thanks to additional capacity in the Pilbara and productivity improvements.
RBC Capital markets analyst Paul Hissey said the March quarter had been softer than RBC had estimated.
"Much of this was to be expected, with the industrial action at Escondida well documented and weather impacts on both the west (iron ore) and east (metallurgical coal) coasts of Australia previously flagged by Rio Tinto and Fortescue Metals," Mr Hissey said in a research note.
"Whilst reduced full-year guidance at two of its pillars - copper and metallurgical coal - should impact earnings, this may already be factored into the share price following Rio's announcement last week."
Rio Tinto said in its first-quarter production report that copper production at Escondida was lower because of industrial action, and that iron ore production in the Pilbara had been impacted by significant weather disruptions.
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