News: BHP UPDATE 1-BHP qtrly iron ore output slips on one-day suspension in Western Australia

(Updates with more detail on output, CEO comment)

April 21 (Reuters) - Global miner BHP Group Ltd (BHP) said on Friday its third-quarter iron ore output fell 0.7% from a year earlier, hurt by a 24-hour suspension of its Western Australia operations due to a fatality at the site.

The world's largest listed miner said iron ore production from mines it operates in Western Australia was 66.2 million tonnes (Mt) during the three months ended March 31, compared with 66.7 Mt a year earlier. Morgan Stanley was estimating production of 67.4 Mt.

Prices of iron ore rose in the March quarter on optimism related to an economic rebound in top consumer China, after the country eased some major COVID-19 restrictions in December 2022 and shifted its policy toward its dwindling property sector.

"Recent engagements with customers in China and India have reaffirmed our positive outlook for commodity demand," BHP CEO Mike Henry said.

"China's economic rebound and solid momentum in India's steelmaking growth (is) helping to offset the impact of slowing growth in the U.S., Japan and Europe," Henry added.

The mining giant also reaffirmed its annual forecast for Western Australian iron ore output at 278 Mt and 290 Mt, and added unit cost at Western Australia iron ore was expected at the top end of $18 to $19 per tonne.