WA iron ore plays second fiddle to BHP copper results

IRON ORE from Western Australia performed at record first-half levels for BHP, but that performance has been outshone by a 30% growth in copper production in the last four years.

BHP’s financial results for the half year ended 31 December 2025, showed 50% of Group EBITDA came from copper.

BHP chief executive Mike Henry said its foresight in recognising the growth in copper and potash had positioned the group ahead of the strengthening copper market.

“BHP is the world’s largest copper producer and with strong performance at Escondida, and solid contributions from our other operations in Chile and South Australia, we have increased FY26 group copper guidance to 1.9–2.0million tonnes. This is allowing us to maximise increased earnings from the recent run up in copper prices as well as gold,” Mr Henry said.

“With four compelling growth options across Chile, Argentina, Arizona and South Australia, we are well positioned to capture the forecast higher long term copper prices.

“We expect first production and revenue from the Jansen Stage 1 potash project in mid-CY27. Following completion of our definitive updated cost estimate, at our recent operational review we announced an increase in Jansen Stage 1 project expenditure to US$8.4 bn.

“Our Western Australia iron ore business continues to deliver for shareholders. WAIO achieved record first half production and shipments and we further strengthened our position as the world’s lowest cost major iron ore producer.

“We continue to invest in this business. We are adding a sixth rail car dumper at Port Hedland so trains can unload faster, supporting an uplift in sustainable volumes to >305 Mt.”

BHP’s underlying EBITDA increased 25% to US$15.5 bn with an underlying EBITDA margin of 58%. Underlying attributable profit also increased by more than 20% to US$6.2 bn. Underlying ROCE increased by around 3 percentage points to circa 24%.

Along with its half-year results BHP announced what it said was the most valuable silver streaming agreement ever, relating to its share ofAntamina’s future silver production in Peru, which follows the agreement in December relating to its share of WAIO’s inland power consumption.

Mr Henry said these agreements would unlock more than US$6 bn of cash with the potential to unlock up to a total of US$10 bn.

“Looking ahead we expect circa 3% global economic growth in CY26. China’s economy is resilient after meeting its around 5% target last year. India continues to outperform. We are optimistic that the economic backdrop is supportive for our key commodities," he said.

“Against a structurally higher cost environment, these conditions reinforce the importance of productivity and cost discipline and play to the strengths of BHP’s low cost, diversified portfolio.”