UPDATE: BHP quarterly copper production falls, iron ore output gains

(Alliance News) - BHP Group Ltd on Wednesday maintained its full‑year guidance and said it now expected copper to come in towards the upper end of its range despite softer quarterly output.

The Melbourne, Australia-based diversified miner said copper production in the third quarter ended March 31 fell 7.1% to 476,800 tonnes from 513,400 tonnes in the same period a year earlier. Sales also decreased 11% to 118,700 tonnes from 133,300 tonnes.

Iron ore production grew 1.7% to 62.8 million tonnes from 61.7 million tonnes, while sales declined 0.7% to 60.2 million tonnes from 60.7 million tonnes.

Steelmaking coal production edged down 2.6% to 3.8 million tonnes from 3.9 million tonnes, with sales increasing 1.6% to 3.9 million tonnes from 3.8 million tonnes.

Energy coal production climbed 12% to 4.0 million tonnes from 3.6 million tonnes, and sales also rose 25% to 4.0 million tonnes from 3.5 million tonnes.

For the first nine months of financial year 2026, copper production fell 2.6% to 1.46 million tonnes from 1.50 million tonnes, iron ore rose 2.1% to 196.6 million tonnes from 192.6 million tonnes, steelmaking coal increased 0.8% to 13.0 million tonnes from 12.9 million tonnes, and energy coal grew 11% to 12.2 million tonnes from 11.0 million tonnes.

Chief Executive Officer Mike Henry said: "BHP has delivered strong performance over the past nine months, including record material mined and concentrator throughput at Escondida and record production at [Western Australia iron ore]. These results reflect the consistency of our operations and the strength of our high margin diversified portfolio in an evolving operating environment...We continue to make steady progress across our copper growth program, consistent with our focus on long-life, high-quality copper supply and disciplined capital allocation."

BHP keeps its annual copper guidance unchanged but now expects output to land in the upper half of the 1.9 million to 2.0 million tonne range. Full-year guidance for iron ore production remains unchanged at between 258 million tonnes and 269 million tonnes.

Steelmaking coal output is expected to land in the lower half of the 18 million to 20 million tonne guidance range and energy coal in the upper half of the 14 million and 16 million tonne range.

Meanwhile, BHP also reported that it has concluded iron ore sales contract negotiations with China Mineral Resources Group Co, the state-owned company in charge of iron ore purchases, ending the dispute over supply terms that has persisted since September.

The talks had been strained for months after CMRG imposed curbs on BHP cargoes in a push to secure new pricing mechanisms and greater use of renminbi settlement.

Bloomberg last week reported that the standoff began to ease after incoming CEO Brandon Craig who will succeed CEO Henry in July, travelled to China for meetings with CMRG and Baowu Steel Group Corp, paving the way for restrictions to be relaxed.

Bloomberg also said CMRG had told several Chinese steel mills they could resume bidding for dollar‑denominated BHP shipments, signalling a further softening of its stance.

BHP shares were up 0.9% at AUD56.01 in Sydney on Wednesday afternoon.

By Judy Amaca, Alliance News reporter Asia-Pacific

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