BHP exceeded its iron ore output estimates for the first quarter of the company’s financial year 2025 (Q1 FY25), driven by the easing of constraints at its Western Australia operations.
In its latest operational review, BHP reported strong performance across key commodities, with iron ore production rising while copper output edged up, supported by higher grades at its Escondida mine in Chile.
BHP’s total copper production for Q1 FY25 reached 476.3 kilo tonnes (kt), representing a 4% increase compared to the same period last year, although it dropped by 6% from the previous quarter.
The Escondida copper mine, contributed significantly, producing 304.2kt of copper, an 11% increase compared to Q1 FY24, despite a 2% dip compared to Q4 FY24. This rise was primarily attributed to higher concentrator feed grades and improved recoveries at the mine.
Other copper operations of BHP showcased mixed results. Production at the Pampa Norte mine in Chile dropped 23% to 60.1kt in Q1 FY25, though guidance for the year remains unchanged at 240-270kt.
In contrast, the Antamina copper mine in Peru and operations in South Australia reported production increases of 12% and 2% respectively from the corresponding quarter of the previous year.
BHP’s Western Australia Iron Ore (WAIO) operations saw a 2% increase in production in the reported quarter, totalling 63.4 million tonnes (Mt). The rise was driven by the successful commissioning of the Port Debottlenecking project (PDP1) and the completion of the ramp-up at South Flank iron ore mine.
The WAIO is an integrated system of four processing hubs and five mining hubs.
On a 100% basis, Western Australia Iron Ore (WAIO) output stood at 71.6Mt, up 3% year-on-year. Full-year guidance for iron ore remains unchanged at 250-260Mt.
The Samarco iron operations, BHP’s joint venture (JV) with Vale in Brazil, produced 1.3Mt of iron ore in Q1 FY25, reflecting a 4% increase from Q1 FY24.
BHP reported a slight decline of 3% to 19.6kt in its Western Australia nickel production for the reported quarter. This is attributed to the temporary suspension of operations at the Nickel West mine.
BHP CEO Mike Henry said: “BHP had 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.”
The mining company forecasts copper demand to rise by 70% by 2050, driven by traditional economic growth, electrification, the energy transition, and the expansion of digital infrastructure.
BHP also aims to finalise its agreement with Lundin Mining to jointly acquire Filo in Q3 FY25. The agreement will enable both companies to advance the Filo del Sol (FDS) and Josemaria copper projects in Argentina.
The company also released its second Climate Transition Action Plan (CTAP), detailing its climate strategy, greenhouse gas emissions targets, and progress in reducing its environmental footprint.
