Copper and Iron Ore Reach Record Highs
BHP Group Limited, also known as BHP, on the Australian Stock Exchange, achieved record copper and iron ore production in the year ending 30 June 2025. The company produced over 2 million tonnes of copper across its global assets. Iron ore output reached 263 million tonnes, up 1% year-on-year.
Escondida, the world’s largest copper mine, delivered its best production in 17 years. The mine produced 1.3 million tonnes, a 16% increase from FY24. Spence recorded its highest-ever output, while Copper South Australia delivered record quarterly production in Q4.
Figure 1: Escondida Copper Mine
WAIO achieved 290 million tonnes on a 100% basis. South Flank exceeded nameplate capacity in its first full year. BHP overcame weather events like Cyclone Zelia and Tropical Storm Sean to maintain output momentum.
CEO Highlights Operational Strength
“BHP delivered record iron ore and copper production, which demonstrates the strength and resilience of our business,” said BHP CEO Mike Henry. He stated this performance underpins shareholder returns amid global uncertainty.
Copper SA finished the year strongly. June quarter output hit 92.1 kilotonnes, contributing to the full-year total of 315.9 kilotonnes. The region also reported record gold and uranium production volumes.
Figure 2: CEO of BHP Group Limited, Mike Henry
Jansen Potash Project Faces Cost Revisions
BHP Group Limited (ASX:BHP) announced a revised capex estimate for the Jansen Stage 1 potash project in Canada. The cost range has increased to between US$7.0 billion and US$7.4 billion. The Company now expects first production in mid-calendar year 2027, reverting to its original schedule.
The Jansen Stage 1 project is 68% complete. BHP has spent US$4.5 billion on the project so far. Stage 2 may extend to FY31 following a strategic capital allocation review.
Group capital expenditure is expected to remain at approximately US$11 billion for FY26 and FY27.
Figure 3: Jansen Stage 1 Potash Project
Steelmaking Coal Production Declines
Steelmaking coal output dropped 19% year-on-year to 18 million tonnes. Despite weather disruptions and geotechnical issues at Broadmeadow, BMA achieved a 5% production increase after the divestment of Blackwater and Daunia in April.
Inventory levels rose 12% as part of a planned rebuild, with FY26 output expected between 18 and 20 million tonnes.
Energy Coal, Nickel and Cost Guidance
NSWEC’s energy coal output decreased 2% to 15 million tonnes. BHP secured approval to extend mining operations to 2030 and agreed with ACCIONA Energía to explore a pumped hydro energy project.
Western Australia Nickel saw a 63% production decline, totalling 30.2 kilotonnes, due to temporary suspension in December 2024. BHP will review the suspension decision by February 2027.
FY25 unit costs remained in guidance across major operations. Escondida costs hit the bottom end of the range. Copper SA and WAIO costs landed in the upper half. BMA’s revised guidance held steady.
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Financial Items and Commodity Pricing
The Company reported working capital movements between US$600 million and US$700 million. It paid US$3.8 billion to US$3.9 billion in cash taxes. Capital and exploration expenditure totalled US$10 billion.
Net debt as of 30 June 2025 stood at approximately US$13 billion. The adjusted effective tax rate is expected near the top end of the 33–38% guidance range.
Copper prices averaged US$4.25 per pound, up 7% from FY24. Iron ore prices declined 19% to US$82.13 per wet metric tonne. Steelmaking coal averaged US$193.82 per tonne, down 27%.
Sustainability and Partnerships
BHP Group Limited (ASX:BHP) continued emissions reduction efforts across operations. The Company signed contracts with COSCO Shipping for two ammonia dual-fuelled Newcastlemax vessels. These ships are designed to cut greenhouse gas emissions by up to 95% per voyage.
Copper SA partnered with Aurizon to launch a major low-emissions logistics solution in South Australia.
BHP and China Baowu completed successful commercial-scale trials using BHP’s Pilbara ores for DRI steelmaking.
FY26 Outlook and Guidance
BHP has indicated a FY26 copper range of 1.8 and 2.0 million tonnes. The guidance expected in iron ore is 258-269 million tonnes. The group has projected the FY26 coal production between 18 to 20 million tonnes.
Copper South Australia is expected to produce 310-340 kilotonnes with the volumes being weighted towards H2 FY26. Escondida production will be slightly lower because of the declining feed grades aiming at 1.15 to 1.25million tonnes.
Samarco joint venture will add 7.0-7.5 million tonne as against 6.4 million tonne in FY25. BHP renewed its emphasis on disciplined capital deployment, safety and operating dependability under all regions.
