BHP Annual Copper Production Falls; Iron Ore Output Notches Record High — Update

By Rhiannon Hoyle

BHP Group said it produced a record amount of iron ore but less copper over the past year, and forecast a further drop in copper output in the year ahead as grades fall at a giant mine in northern Chile.

The Australia-based miner, the world's largest by market value, said copper production totaled 1.95 million metric tons for the year ended June 30, a 3% decrease from the prior 12-month period.

Iron ore output totaled 264.7 million tons, up 1% on year, while production of steelmaking coal was 18.6 million tons, up 3%, it said.

BHP has long relied on iron ore for the bulk of its earnings, benefiting from huge demand as China's economy rapidly expanded. Now, however, the company is pivoting its portfolio toward copper, a critical component in data centers, electric vehicles and renewable energy infrastructure.

As the world's largest copper producer, BHP saw its copper business generate more than half of the group's total earnings in the first half of its fiscal year for the first time.

BHP had forecast copper output of between 1.9 million and 2.0 million tons for the past year through June, and analysts expected production to come in around 1.95 million tons, according to a consensus estimate collated by Visible Alpha.

Looking ahead, the miner anticipates production between 1.65 million and 1.80 million tons, a decline it attributes primarily to lower forecast grades at Escondida, the world's largest copper mine. As mines age, the grade or concentration of metal within a mined rock tends to diminish.

BHP said it is progressing copper growth projects and expects to provide more detail on plans to potentially double copper production from its South Australian operations in November.

Chief Executive Brandon Craig, who succeeded Mike Henry on July 1, said BHP has benefited from stronger prices for both iron ore and copper, with its average realized copper price rising 35% year over year.

Despite headwinds including inflation, higher diesel costs and global supply chain disruptions, the company expects all operations to remain within annual unit cost guidance, he said.

In its iron-ore division, record output was "as a result of strong operational performance across the supply chain," the company said.

BHP had forecast annual iron-ore output of between 258 million and 269 million tons for the past year. Analysts expected production to be around 264.1 million tons, according to Visible Alpha.

The company said its South Flank mine in Western Australia exceeded annual nameplate capacity, and that a drawdown of stockpiles at the Central Pilbara Hub supported record volumes.

BHP expects to produce between 260 million and 272 million tons of the steel ingredient in the coming year.

On Thursday, workers at BHP's Port Hedland iron-ore export terminal in Western Australia plan to hold an eight-hour strike, after unions failed to reach an agreement with the miner following months of wage negotiations.

A BHP spokesperson said the company has plans in place to ensure that operations can continue.

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

(END) Dow Jones Newswires

July 15, 2026 20:59 ET (00:59 GMT)