By Rishav Chatterjee

(Reuters) -Global miner BHP beat first-quarter iron ore output estimates on Thursday, spurred by easing of bottlenecks at its Western Australia operations amid efforts by China to revive its grappling property market and faltering economic growth.

The world's largest listed miner over the last year has ramped up the South Flank mine to full production capacity and streamlined its port operations for its Western Australian iron ore business.

The ramp-up comes at a time when mining rivals including Vale and Rio Tinto are moving to expand their supplies. Vale plans to further lift its production, while Rio's Simandou mine will begin production next year.

BHP, which is diversifying into potash, said the $10.5 billion Jansen Stage 1 project was 58% complete.

The miner's upbeat iron ore production update comes as China, the commodity's largest purchaser, has been announcing a slew of stimulus measures to support its downbeat economic recovery.

BHP said iron ore output from Western Australia on a 100% basis was 71.6 million metric tons in the three months to Sept. 30, beating a Visible Alpha consensus estimate of 70.7 Mt, according to a Macquarie note.

"Upcoming stimulus (from China) is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence," said CEO Mike Henry.

BHP, which has been aiming to expand its copper operations, recorded a 4% rise in the metal's output for the quarter, reflecting improved performance at its Escondida mine in Chile.

Analysts at Citi said Escondida output rose on higher grades and throughput at the Chilean mine.

Earlier this year, BHP made a $49 billion bid for British copper major Anglo American, which did not materialise. But BHP joined hands with Lundin Mining to take over Filo Corp, gaining access to more copper assets.

Copper, used widely across the globe, is an ideal conductor of electricity and easily malleable, qualities that have made it widely popular for use in wiring, engines, construction equipment, electronics and other devices.

BHP's shares were up 0.3% at A$43.67 in early trade.

(Reporting by Rishav Chatterjee and Echha Jain in Bengaluru; Editing by Sriraj Kalluvila and Rashmi Aich)