BHP reports strong performance with record copper and iron ore production

BHP Group is showing strong operating momentum, with investment being made for growth plans decades ahead, CEO Mike Henry said Tuesday.

The investment plans for the diversified mining and resources group include a "significant copper growth pipeline" and a pathway to 2 million tons of attributable copper production in the 2030s, he said. Global miners are focusing on copper because it has become the critical metal for the energy transition, electrification, and digital infrastructure.

"BHP delivered another half of very strong performance with operational records at our copper and iron ore assets. This was… in a positive commodity price environment, with copper prices up 32% and iron ore prices 4% higher year-on-year," he said.

Copper production guidance for the full 2026 financial year had been increased to between 1 200kt and 1 275kt, compared with 1 150kt and 1 250kt previously.

"Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the 2026 financial year production guidance range. Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output," said Henry.

In iron ore, Western Australia Iron Ore (WAIO) achieved record first half production and shipments, positioning it "well ahead" of the typically wet third quarter.

Volumes from Samarco rose as a result of strong operational performance at the second concentrator, following its restart at the end of the first half of the 2025 financial year.

A transaction with Global Infrastructure Partners had been announced in the first half, involving WAIO's inland power network, that would see BHP realise proceeds of $2 billion once completed, while retaining ownership and operational control "in an innovative and value accretive transaction," said Henry.

Steelmaking coal production increased, supported by a five-year high stripping performance at BHP Mitsubishi Alliance (BMA), and energy coal was up 10%.The Jansen potash project in Canada was on track to begin production in mid-2027.

"Jansen will be a long life, low cost and scalable asset that will add a new, future facing commodity to BHP's portfolio," said Henry.

BHP said China's commodity demand remained resilient, supported by targeted policy measures and solid exports. Momentum moderated in the second half of the 2024 financial year, notably in construction, manufacturing and infrastructure investments.

"India is emerging as a key engine of demand, with strong domestic activity sustaining steel and rising copper needs. Forecast global growth in 2026 is around 3%, creating a positive backdrop for commodity demand," the group directors said.

By the end of the 2026 half year, unit costs at Escondida and Spence were expected to be at the bottom end of their respective guidance ranges. Unit costs at Copper SA and WAIO were expected to be within their guidance ranges. Unit costs at BMA were expected to be in the upper half of its guidance range due to higher than planned major maintenance. For the full year, unit cost guidance was unchanged for all assets.

Group net debt at December 31, 2025 was expected to be between $14 billion and $15bn. The strong operational performance featured record concentrator throughput and improved recoveries driven by operational enhancement, including the introduction of new reagents.

This was partially offset by planned lower feed grade of 0.93% from 1.03% at the same time last year. "Concentrator feed grade is now expected to be between 0.6% and 0.9% for the full year, from 0.85% previously.

The group had reached an agreement with Rio Tinto to explore opportunities to mine up to 200 million tons of iron ore at BHP's Yando and Rio Tinto's neighbouring Yandicoogina iron ore operations in the Pilbara, Western Australia.

On the JSE, BHP's share price was down 2.04% in the afternoon to R522.30, a price that was over 13% higher than at the same time last year.

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