BHP posted a strong first half of FY26, highlighted by record operational performance at its copper and iron ore assets, prompting an increase in group copper production guidance. The company also advanced portfolio optimization and reaffirmed progress on its long-term growth projects, particularly in copper and potash.
Copper was the standout performer, benefiting from a favorable pricing environment and operational gains. Group copper guidance for FY26 has been lifted following stronger-than-expected delivery across multiple assets. Escondida, BHP’s flagship copper operation in Chile, achieved record concentrator throughput, leading to an expanded production guidance range. Antamina has also raised its output outlook, while Spence and Copper SA remain on track, with Copper SA delivering record refined gold production as a by-product.
Iron ore operations also delivered record results. Western Australia Iron Ore (WAIO) achieved its highest-ever first-half production and shipments, placing the business well ahead of the typically challenging wet season in the third quarter. In Brazil, Samarco volumes increased following strong performance at its second concentrator, which was restarted late in the first half of FY25.
BHP also announced a transaction with Global Infrastructure Partners involving WAIO’s inland power network. Once completed, the deal is expected to generate approximately US$2 billion in proceeds while allowing BHP to retain ownership and operational control, a structure the company describes as innovative and value-accretive.
In coal, steelmaking coal production rose, supported by a five-year high in stripping performance at BMA. Energy coal output increased by 10% year on year, adding to the group’s diversified earnings base.
On growth projects, BHP confirmed that the Jansen potash project in Canada remains on track for first production in mid-2027. The company reiterated that Jansen is expected to be a long-life, low-cost, and scalable asset, providing exposure to a future-facing commodity aligned with global food security trends. An updated cost estimate for Jansen Stage 1 was released alongside the operational update.
BHP’s performance comes amid a mixed but resilient global demand environment. China’s commodity demand remains supported by targeted policy measures and solid exports, although momentum has moderated in the second half of calendar 2025, particularly in construction and infrastructure. India is increasingly emerging as a key demand driver, with robust domestic growth underpinning rising steel consumption and accelerating copper demand.
Source: Oilprice