News: BHP UPDATE 1-BHP posts annual iron ore output near top end of forecast

(Adds details, background on mines)

July 20 (Reuters) - BHP Group Ltd (BHP) on Tuesday reported full-year iron ore production near the top end of its forecast range, thanks to record production at two mines in Western Australia.

However, the world's largest listed miner posted a 4% decline in fourth-quarter output, compared with last year.

BHP notched a record output at its Jimblebar mine and Mining Area C in the Pilbara region, at a time of soaring iron ore prices propelled by robust Chinese demand and supply issues in Brazil.

The high commodity prices are expected to help BHP post bumper full-year profits in August, alongside rivals Rio Tinto (RIO) and Fortescue Metals Group (FMG) .

The $3.6 billion South Flank project produced its first iron ore in May and is expected to eventually churn out 80 million tonnes (Mt) a year. Combined with Mining Area C, it will form the largest operating iron ore hub in the world, producing 145 Mt a year.

The global miner produced 284.1 million tonnes (Mt) of the steel-making material in Western Australia on a 100% basis in fiscal 2021, and expects output in 2022 between 278 Mt and 288 Mt.

Fourth-quarter output was 72.8 Mt, down from 76 Mt.