BHP Upgrades Copper Output Guidance; Raises Potash Project Cost Estimate Further

By Rhiannon Hoyle

BHP Group upgraded its annual copper-production guidance amid record-high prices for the industrial metal, but announced another cost overrun on its giant potash project in Canada.

BHP, the world's top miner by market value, said Tuesday it now expects to produce between 1.9 million and 2.0 million metric tons of copper in its fiscal year through June, compared to a prior estimate of between 1.8 million and 2.0 million tons.

Higher-than-anticipated output of the metal comes on the back "of stronger delivery across our assets," and will help the miner further capitalize on record prices, said Chief Executive Mike Henry.

BHP reported second-quarter copper output of 490,500 tons, down 1% on the quarter immediately prior and 4% on a year ago.

Australia-based BHP has been reshaping its business to bet on an accelerating energy transition and global population growth via investments in copper and potash, a fertilizer ingredient. The miner currently relies on the steel ingredient iron ore for more than half its earnings.

The company last year flagged rising costs at the Jansen potash project in Canada's Saskatchewan province, its only major development currently under construction. Then, the miner said the first stage of the project could cost between $7.0 billion and $7.4 billion to build, up from $5.7 billion previously, but said its estimates were being reviewed.

On Tuesday, BHP said it now expects the first stage of Jansen will cost $8.4 billion, including contingencies. It cited "construction hours and quantities of materials that were not included in previous execution cost estimates" for the latest overrun.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 19, 2026 17:57 ET (22:57 GMT)