UPDATE 2-BHP lifts iron ore output, cuts $200 mln from petroleum unit
* BHP lifts quarterly iron ore output 7 pct
* Says will mine 247 million/t in FY 2016
* Shaves $200 million off petroleum spending (Adds cost cuts, petroleum output)
By James Regan
SYDNEY, Oct 21 (Reuters) - BHP Billiton boosted September quarter iron ore production by 7 percent on Wednesday, while maintaining full-year guidance and shrugging off growing concerns of a mounting global supply glut.
The mining giant also trimmed its planned capital spending in oil and gas, finding a further $200 million in cost savings as it tightens its belt during a commodities downturn driven by softer demand in China.
"BHP Billiton remains on track to meet full-year production and cost guidance after a solid operational performance this quarter," Chief Executive Andrew Mackenzie said in the report, ahead of the company's annual meeting in London on Thursday.
At its projected iron ore production rate, BHP will retain its world number three ranking in output and exports of the steel-making commodity, which accounts for more than half its revenue and profits.
Iron ore prices are down sharply from a high of nearly $200 a tonne in 2011 to $52.10 .IO62-CNI=SI. as of Wednesday. The price is forecast to drop to $50 over the next two years, according to a recent Reuters poll Continuación...