BHP: copper and iron ore up in Q1

BHP copper and iron ore production have seen increases, driven by operational improvements at Escondida copper in Chile and WA iron ore (WAIO), according to the company’s Q1 operational review.

The company reports it is on track to meet FY25 production guidance thanks to strong operational performance.

BHP chief executive Mike Henry says BHP is seeing a strong start to the 2025 financial year, with production up across all major commodities for the quarter.

“Copper production was up 4% due to higher grade and recoveries at Escondida and WAIO production was up 3% as we unlocked capacity by completing the debottlenecking work at the port,” he said.

“We are also seeing signs of stabilisation in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines.”

Future increases in iron ore supply are of particular interest, with Chinese steel production being slashed amid a property crisis in the country.

“China has announced a series of monetary easing policies in an effort to support economic growth and has indicated more significant fiscal stimulus is on the horizon,” said Mr Henry.

“Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.”

In addressing opportunities to add social value, BHP released its second Climate Transition Action Plan (CTAP). The CTAP outlines the company’s climate strategy and GHG emissions targets, providing an in-depth view of its plans and progress.

BHP has a medium-term goal to support industry to develop steel production technology capable of 30% lower GHG emissions intensity relative to conventional blast furnace steelmaking by 2030.

The company says it is collaborating with 11 steelmakers — representing around 22% of the world’s reported steel production — on a range of projects to support this goal, including India’s JSW Steel and Carbon Clean and Steel Authority of India.

The CTAP will be put to a shareholder advisory vote at BHP’s upcoming annual general meeting on October 30.

BHP has also increased its exposure to copper, with its recent joint acquisition of Filo with Lundin Mining.

“We added to our copper growth prospects in the quarter, announcing a proposed 50/50 joint venture in Argentina with Lundin Mining to advance what we consider to be one of the most significant global copper discoveries in decades,” said Mr Henry.

BHP expects copper demand to grow by 70% by 2050, as a result of traditional economic growth, electrification and the energy transition and digital infrastructure.

The company is focusing on significant projects across additional commodities as well, with the Jansen Stage 1 potash project making healthy progress.

Stage 1 of the project concerns the design, engineering and construction of an underground potash mine and surface infrastructure with capacity to produce 4.15mtpa.

“In Canada, our Jansen Stage 1 potash project is 58% complete after a productive summer period with first production scheduled in around two years,” said Mr Henry.