Australia's mining giant BHP Billiton Ltd (ASX:BHP) says it remains cautious on the short-term outlook for the global economy, even after achieving record annual production results for its petroleum and iron ore divisions.

In its June quarter production report, the world's biggest resources company said "Uncertainty surrounds the near term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels."

"Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist," BHP said in a statement.

"BHP Billiton sees these measures as a normal continuation of China's economic management policies."

Compared with the same period in 2009, iron ore production for the three months to June 30 rose 16 per cent to 31.24 million tonnes.

Full-year iron ore output recorded 124.96 million tonnes, 9 per cent higher on the previous year.
The boost in iron ore production reflected the strong contract prices BHP was able to achieve after it moved away from benchmark pricing.

"Our expectation is that future Western Australia iron ore shipments will be priced on this basis," BHP said.
Petroleum output also ascended, up 8 per cent to 40.84 million barrels of oil equivalent (boe), to reach a record 158.56 million boe for the year to June, an increase of 15 per cent on the previous year.

Metallurgical coal production climbed 16 per cent for the quarter, to 10.93 million tonnes, taking BHP's full-year total to 37.38 million tonnes.

The global miner said 34 per cent of metallurgical coal shipments were priced on a shorter term basis for the year, as it stopped using benchmark pricing system.

In the final three months of fiscal 2010, most of its metallurgical coal was priced on a shorter term basis, the company said.
Copper production in the second quarter slumped 5 per cent, year-on-year, to 291,100 tonnes, with the miner's Olympic Dam project predicted to go back to full production in the current quarter.

For the full year, copper production fell 11 per cent, while uranium production slid 43 per cent and gold plunged 19 per cent.
Compared to the previous year, energy coal production results were steady.

AT 1015 AEST, shares in BHP climbed 73 cents, or 1.9 per cent, at $39.04.