BHP iron ore output hits a record BHP Billiton beat its full-year production forecasts for iron ore and said expects to increase output of the steelmaking material by a further 5 per cent in 2013. The world's biggest mining company by market value said on Wednesday that its operations in the Pilbara region of Western Australia had produced a record 174m tonnes of iron ore in the year to the end of June. That exceeded guidance of 167m tonnes and followed a strong fourth quarter in which it shipped 44.6m tonnes of iron ore, up 15 per cent on the same period a year ago. BHP attributed the performance, which marks a 12th straight year of record-high iron ore output, to a new ore processing plant, increased ship-loading capacity and an expansion of its rail network in the Pilbara. The update came a day after a production report from rival Rio Tinto that indicated flat quarterly iron ore output and flagged concerns about the outlook for the global economy and China. BHP has grown increasingly cautious about the outlook for commodity prices, in March warning of "flattening" iron ore demand from China. BHP expects iron ore production from its mines in the Pilbara to increase by 5 per cent to 181m tonnes in the 2013 financial year. Iron ore, a key steelmaking ingredient, is BHP's biggest division and is expected to generate around half of group earnings before interest this year. However, BHP Billiton shares fell in the wake of the production report as investors focused on concerns about slowing global economic growth and demand from China. The stock was down 1.8 per cent at A$30.24 in mid-afternoon trading on Wednesday. China's effort to cool its property market, combined with slower economic growth, have resulted in a sharp fall in steel demand growth, which is expected to expand at just 4 per cent this year after averaging double-digit annual growth over the past decade. Steel futures in Shanghai fell to their lowest levels this year on Tuesday. The slowdown comes as BHP considers a US$20bn plan to expand iron ore capacity in the Pilbara by 100m tonnes a year. In its update BHP said it had lifted a "force majeure" moratorium on its BHP Mitsubishi Alliance mines in Queensland after reaching agreement with unions over working practices. BHP shipped 5.6m tonnes of coking coal from its mines in Queensland in the fourth quarter, down from 6.5m tonnes a year ago. BHP also reported a 15 per cent rise in copper production to 312,000 tonnes in three months to the end of June and said production of oil and natural gas liquids from its US shale gas division had increased by 10 per cent to 3.8m barrels a day. The onshore gas business is closely watched by analysts and the investors who fear BHP may have to write down the value of its assets when it reports annual results next month. BHP spent US$17bn acquiring shale gas assets in the US last year, just before natural gas prices plunged. As a result BHP has focused its onshore drilling activity in the US on liquid rich prospects.