BHP reported record production of copper and iron ore in its year to June 30, 2026.
Image: File
BHP Group reported record copper and iron ore output in the year to June 30, as it strengthened its growth pipeline and kept a tight rein on costs.
The global mining and resource group said in an operational review Thursday that the strong performance was against a backdrop of stronger realised prices for both copper and iron ore, with copper prices around 35 percent higher than a year ago.
Total copper production decreased 3% to 1,953kt. Copper production for the 2027 financial year was expected to be between 1,650 and 1,800kt predominately as a result of the forecast grade decline at Escondida.
Cost control was strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions.
“We enter the new year with momentum and significant opportunities to accelerate improvements in safety, productivity and reliability through our operating system and the adoption of technology. The broader economic picture remains resilient amid recent commodity market volatility,” said BHP’s CEO Brandon Craig in a statement.
During the year applications to restart Cerro Colorado in Chile were progressed, as were defined development pathways for Copper South Australia, Escondida and Spence. Future copper options in the US through progress at Resolution was expanded, as was the investment in Faraday.
In Canada, Jansen was on track to begin potash production next year, adding a new commodity and further diversifying the portfolio.
“We continue to see strength in the US and China, even as the global economy adjusts to evolving trade dynamics. We remain confident in the demand for our core commodities, supported by the long-term trends shaping the world, including industrialisation, urbanisation, digitalisation, the energy transition, population growth and food security.” said Craig,
Copper production for the year was driven by strong performance at Escondida. At Antamina, copper production increased to a year record of 152kt as a result of higher feed grades and improved operational performance. Zinc production fell to 96kt due to lower feed grades. Production for 2027 was expected to be between 120 and 140kt for copper and between 35 and 55kt for zinc due to planned lower feed grades.
At Escondida production fell 3% to 1,261kt due to planned lower concentrator feed grade of 0,90% (FY25: 1,02%). This was partially offset by continued strong operational performance and productivity improvements, with record material mined, record concentrator throughput and improved recoveries, driven by operational enhancements.
Production guidance for 2027 was unchanged at between 1,000 and 1,100kt.
WAIO achieved record iron ore production, BMA delivered the highest stripping volumes in five years, and NSWEC exceeded the top end of its production guidance range.
Unit costs for the 2026 financial year were expected to be at the bottom end of the guidance ranges for all copper assets, within the range for WAIO and towards the top end for BMA, demonstrating “strong cost management, resilience in a challenging macro-economic environment and the benefits of by-product credit contributions.
Production guidance for the 2027 financial year remained "strong underpinned by the world’s largest copper portfolio, and continued growth in steelmaking commodities," said Craig.
In June, Vicuña received approval for the inclusion of the Josemaria and Filo del Sol deposits to Argentina’s Incentive Regime for Large Investments (RIGI) under the Long-Term Strategic Export Projects designation (PEELP). Vicuña is the first mining project to be granted the RIGI PEELP status which ensures the fiscal framework under which Vicuña will operate remains unchanged for 40 years.
BHP also advanced its Chilean copper growth options with submission of the Environmental Impact Assessment (EIA) for a potential restart of the Cerro Colorado operations.
In July, BHP signed definitive agreements for the previously announced transaction for Faraday Copper Corp (Faraday) to acquire BHP’s legacy asset San Manuel in Arizona, US in exchange for a 30% equity interest in Faraday on a fully diluted basis.
Spence also signed a MOU with Sierra Gorda SCM to explore commercial collaboration opportunities aimed at improving the efficiency and long-term competitiveness of these two adjacent operations.
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