BHP first-quarter copper output falls 19%, iron ore climbs 4%

(Alliance News) - BHP Group Ltd on Tuesday said copper production declined in the first quarter of financial year 2027 while iron ore and coal output increased, with no change to full-year production guidance.

The Melbourne, Victoria-based diversified miner said total copper production declined 19% to 400,700 tonnes in the three months ended September 30 from 493,600 tonnes in the same quarter a year earlier.

The average realised price for copper improved by 53% to USD7.01 per pound from USD4.59 per pound previously.

Chief Executive Officer Brandon Craig said: "Copper production was lower in the first quarter, reflecting planned grade declines and scheduled maintenance, alongside temporary disruptions from severe weather in Chile, stops for safety and the conveyor failure at Carrapateena.

"Global markets remain volatile, with geopolitical tensions, trade uncertainty and elevated energy and freight costs continuing to create headwinds across the industry. At the same time, demand for commodities remains resilient, supported by continued industrialisation and urbanisation in China and India, alongside unprecedented investment in data centres and enabling infrastructure globally, which is reinforcing the long-term outlook for copper."

Total iron ore production increased 3.7% to 66.5 million tonnes from 64.1 million tonnes over the same period, with the average realised price down 9.2% at USD76.27 per wet metric tonne from USD84.04.

BHP's share of steelmaking coal produced by its 50:50 alliance with Mitsubishi Corp subsidiary Mitsubishi Development was 1.0% higher at 4.9 million tonnes, while the average realised price jumped 34% to USD242.82 per tonne from USD180.67.

Energy coal production climbed 26% to 4.4 million tonnes from 3.5 million tonnes, with the average realised price up 23% at USD116.60 per tonne from USD95.18.

"Production increased driven by higher bypass coal as mining progressed into lower strip ratio areas and improved wash plant throughput," BHP explained.

In light of these results, BHP made no changes to its full-year production guidance.

BHP expects full-year copper production between 1.7 million tonnes to 1.8 million tonnes, iron ore between 260 million tonnes to 272 million tonnes, steelmaking coal between 18.5 million tonnes and 20.5 million tonnes and energy coal between 14 million tonnes and 16 million tonnes.

Shares in BHP traded 2.3% lower at AUD59.08 each in Sydney on Tuesday morning.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

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