BHP review reveals record iron ore in face of industrial action

BHP’S 30 June operational review makes no mention of the ongoing Pilbara union dispute, focusing instead on production records, cost performance and project approvals.

The mining giant has closed out FY26 with record Western Australia iron ore (WAIO) production and its second consecutive year of ~2 million tonnes of copper, delivering strong operational performance across its global portfolio despite inflation, higher diesel prices and supply‑chain volatility.

Chief executive Brandon Craig said the group “finished the year strongly” with several production records, noting that stronger realised prices for copper and iron ore helped offset cost pressures.

WAIO delivered 257 Mt of production (291 Mt on a 100% basis), achieving record material mined and record shipments. BHP attributes the performance to: improved car dumper performance following the CD3 rebuild in Q1 FY26; reduced tie‑in activity on the multi‑year rail technology program; operational improvements across the rail network; and strong inflow and supply‑chain efficiency.

A BHP report said the result reinforced stable export flows through Port Hedland, with WAIO’s supply chain showing resilience after wet‑weather impacts earlier in the year.

FY27 WAIO production is expected to be 253–264 Mt (286–298 Mt on a 100% basis), including the renewal of car dumper 4 in H1 FY27.

BHP approved the Ministers North project in June, a high‑grade Brockman deposit expected to deliver ~20 Mtpa once ramped up. The project is designed to support sustained WAIO production of >305 Mtpa (100% basis) from Q4 FY28, utilising existing Yandi infrastructure and targeting returns above 30%.

Copper production reached 1953 kt, down 3% year‑on‑year due to planned grade declines at Escondida. Key copper highlights include:

• Escondida: record material mined and concentrator throughput;

• Copper South Australia: Olympic Dam achieved a 20‑year copper production record;

• Antamina: financial‑year record copper output;

• Spence: concentrator upgrade and chalcopyrite leaching projects sanctioned, with first production expected FY28–CY28.

FY27 copper guidance is 1650–1800 kt, reflecting lower grades at Escondida.

BMA steelmaking coal production rose to 18.6 Mt, supported by improved wet‑weather performance and recovery from Tropical Cyclone Koji. Raw coal inventories increased ~30% to strengthen supply‑chain stability.

BHP expects FY26 unit costs to finish: bottom end of guidance for Escondida, Spence and Copper South Australia; within range for WAIO; and at the top end for BMA.

Diesel price increases and inflation were partially offset by strong by‑product credits and operational discipline.

BHP enters FY27 with momentum across iron ore, copper and coal, supported by strong operational performance and a diversified growth pipeline. The company remains confident in long‑term demand for its core commodities, citing global trends in industrialisation, urbanisation, digitalisation and the energy transition.