BHP 1st Half Iron Ore Production, Shipments at Record High — Commodity Comment

By Rhiannon Hoyle

BHP Group, the world's biggest miner by market value, Tuesday reported an increase in second-quarter iron ore and energy coal production, and a drop in output of copper and steelmaking coal. Chief Executive Mike Henry said the miner "enters the second half of FY26 with strong operating momentum." Here are some remarks from the miner's quarterly update.

On its iron-ore operations:

Western Australia Iron Ore "achieved record first half production and shipments as a result of strong supply chain performance across our mine, rail and port operations, including record material mined (up 9%). Car Dumper performance improved following the completion of the CD3 rebuild in Q1, which alongside the planned reduction in tie-in activity on the multi-year Rail Technology Program, generated increased efficiency across the rail network and higher inflow to the port."

On iron-ore contract talks:

"Sales were higher than the prior year, with lump sales up 3%. We are currently negotiating annual contract terms with the China Mineral Resources Group. During negotiations, we continue to optimize product placement distribution channels and take actions within our operations to preserve operational flexibility and productivity. This has seen some impact to realized price."

On the Escondida copper mine:

"Strong operational performance, with record concentrator throughput and improved recoveries driven by operational enhancements, including the introduction of new reagents. This was partially offset by planned lower concentrator feed grade of 0.93% (1H FY25: 1.03%)."

On the Spence copper mine:

"Spence production decreased in line with planned lower cathode production as a result of a decline in stacked feed grade through the leaching circuit, driven by ore mineralogy as we transition into the deeper hypogene mineral deposits of the orebody. This was partially offset by improved leaching performance through optimising reagent usage."

On Copper South Australia:

"Production increased as a result of solid operational performance including record material mined (and the weather-related power outage in the prior period). Improved performance included an increase in the transfer of ore to surface at Carrapateena which was offset by planned lower grades of 1.19% (1H FY25: 1.41%)."

On steelmaking coal operations:

"Production increased due to strong operational performance at our open cut operations, supported by the highest 1H stripping volumes in five years, which offset the impact of planned higher strip ratios.

We continue to safely manage ongoing geotechnical challenges at Broadmeadow. While underground production rates were strong in 1Q, further deterioration in ground conditions in 2Q materially impacted operations and led to the deferral of the planned longwall move from 2Q to 3Q FY26."

On energy coal output:

"Strong operational performance due to increased bypass coal as well as mining lower strip ratio areas."

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

(END) Dow Jones Newswires

January 19, 2026 23:03 ET (04:03 GMT)