On Tuesday, the world's largest mining company$BHP Group Ltd (BHP.US) $The company reported results for the 2022 fiscal year to June 30, benefiting from record commodity prices, saw its full-year profit hit an all-time high and said it would press ahead with production expansion in anticipation of a stronger outlook for Chinese demand.

BHP Group Ltd's adjusted profit for the fiscal year ended June 30 totaled $23.8 billion, above analysts' average expectations of $21.6 billion and the highest level since the merger in 2001, according to the results. In addition, the company said it would pay a record final dividend of $3.25 a share.

BHP Group Ltd said in a statement that the company would study plans to expand the annual production of its most profitable iron ore division to 330 million tons and would continue to evaluate plans to increase copper and nickel production. In addition, a large potash mine in Canada is still expected to start production in 2026.

"We expect China to become a stable source of commodity demand in the coming year as supportive policies are gradually implemented," Mike Henry, chief executive, said in a statement. It is reported that more than 60 per cent of BHP Group Ltd's revenue comes from the Chinese market.

However, its competitors warned of the weak outlook.$Rio Tinto PLC (RIO.US) $Results released last month showed that the company's profits fell in the first half and cut its dividend in half. In addition, the gold mining giant$Newman Mining (NEM.US) $And copper producer First Quantum Minerals (FOVLF.US) have also warned investors about inflationary pressures in recent weeks.

But BHP Group Ltd said in a statement that while the company would face pressure from a slowdown in developed economies, rising costs and tight labour markets, there were still opportunities for low-cost miners as inflation also pushed up product prices. Unit production costs of major mineral products have risen by 13 per cent due to epidemic-related problems and rising prices of diesel and electricity.

It is understood that BHP Group Ltd's goal is to seize any pressure from competitors to increase the production of metals related to the supply chain of clean energy and electric vehicles. Henry said last week that it was a good deal to buy Australian copper and gold miner OZ Minerals at a valuation of about A $8.4 billion (US $6 billion) given the "deteriorating external environment". However, OZ Minerals later rejected the offer on the grounds that the offer was too low.