BHP Billiton PLC announced on Wednesday that it expects its annual copper production to fall within the upper half of its projected range, while production costs at its large-scale Escondida copper mine in Chile may be lower than previously anticipated.

The Australia-based mining giant revised down its unit cost forecast for the Escondida mine from the prior range of $1.20 to $1.50 per pound to a new range of $1.00 to $1.20 per pound. The company attributed this adjustment to increased by-product credit contributions and strong operational performance. BHP Billiton PLC's copper production forecast for the fiscal year ending in June remains between 1.9 million and 2.0 million metric tons.

The report indicated a 7% year-on-year decline in the company's copper output, while iron ore production increased by 2%.

CEO Mike Henry sought to reassure investors that the company is well-positioned to manage cost pressures resulting from the Middle East conflict.

He stated, "Amid industry-wide energy and consumables cost pressures caused by the Middle East conflict, our centralized procurement capabilities and low-cost operations place us in a favorable position."