BHP posted a strong first half of FY26, highlighted by record operating performance across its copper and iron ore assets, prompting an increase in the group’s copper production guidance. The company also made progress in optimizing its portfolio and reaffirmed progress in its long-term growth projects, particularly in copper and potash.
Copper was a strong performer, benefiting from a favorable price environment and operating profits. The Group’s FY26 copper guidance was raised following stronger than expected delivery across multiple assets. Escondida, BHP’s main copper operation in Chile, achieved record concentrator performance, leading to an expanded production range. Antamina has also raised its production outlook, while Spence and Copper SA stay the course, with Copper SA delivering record production of refined by-product gold.
Iron ore operations also delivered record results. Western Australia Iron Ore (WAIO) achieved its highest ever production and shipments in the first half, putting the business well ahead of the normally challenging third quarter rainy season. In Brazil, Samarco volumes increased following the strong performance of its second concentrator, which restarted at the end of the first half of FY25.
BHP also announced a transaction with Global Infrastructure Partners involving WAIO’s inland power grid. Once completed, the deal is expected to generate approximately $2 billion in revenue while allowing BHP to retain ownership and operational control, a structure the company describes as innovative and value-added.
In the coal sector, steelmaking coal production increased, supported by BMA’s mining performance, a five-year high. Energy coal production increased 10% year-on-year, adding to the group’s diversified profit base.
In terms of growth projects, BHP confirmed that the Jansen potash project in Canada remains on track to reach first production by mid-2027. The company reiterated that Jansen is expected to be a scalable, low-cost, long-lived asset, providing exposure to a future-proof 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 raw materials demand remains supported by targeted policy measures and strong 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 strong domestic growth underpinning rising steel consumption and accelerating copper demand.
Copper remains a strategic focus for BHP as electrification, energy transition and network expansion drive long-term demand growth. The company is investing heavily in its copper portfolio, targeting approximately 2 million tonnes per year of attributable copper production in the 2030s.
With global economic growth expected to be around 3% in 2026, BHP enters the second half of FY26 with strong operational momentum and a portfolio positioned to benefit from both near-term commodity cycles and longer-term structural demand.
By Charles Kennedy for Oilprice.com
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