Staff Writer
BHP Group Limited has lifted its copper production guidance for the 2026 financial year after strong operational performance and firm commodity prices during the half year ended 31 December 2025.
In its operational review, the mining group said copper prices rose 32% year-on-year, supported by solid global demand and supply disruptions at rival producers.
Iron ore prices were also higher, rising 4% over the same period. Against this backdrop, BHP recorded operational records across its copper and iron ore businesses.
The company said it increased its copper production guidance for the 2026 financial year after stronger-than-expected performance across its portfolio.
Escondida, BHP’s main copper operation in Chile, achieved record concentrator throughput during the half year, leading to a higher production guidance range.
Production guidance at Antamina was also lifted, while Spence and Copper SA remained on track. Copper SA recorded a milestone during the period, achieving its highest level of refined gold output.
BHP said it continued to advance its copper growth projects. In December, Vicuña submitted an application under Argentina’s Incentive Regime for Large Investments, known as RIGI.
The Vicuña project remains on track to complete its integrated technical report in the first quarter of the calendar year 2026. In Chile, the Environmental Impact Declaration permit for the Escondida New Concentrator is expected to be submitted in the second half of the 2026 financial year.
In iron ore, Western Australia Iron Ore achieved record production and shipments during the first half, placing the operation ahead of the wetter third quarter.
Volumes from Samarco also increased, reflecting improved performance at its second concentrator following its restart late in the first half of FY25.
During the period, BHP announced a transaction with Global Infrastructure Partners involving the WAIO inland power network.
Once completed, the transaction is expected to generate proceeds of about US$2 billion, while BHP retains ownership and operational control of the network.
Steelmaking coal production rose during the half year, supported by the strongest stripping performance at BHP Mitsubishi Alliance in five years. Energy coal output increased by 10%.
The Jansen potash project in Canada remains on track to begin production in mid-2027. BHP said Jansen will add a new commodity to its portfolio, with an updated cost estimate for Stage 1 released separately.
On the demand side, BHP said China’s commodity demand remained resilient, supported by targeted policy measures and solid exports, although momentum eased in the second half of the calendar year 2025, especially in construction, manufacturing and infrastructure investment.
India continued to emerge as a key driver of demand, with strong domestic activity supporting steel use and rising copper demand.
BHP said forecast global economic growth of about 3% in 2026 provides support for commodity demand.
The company enters the second half of FY26 with strong operating momentum and continues to invest for the long term, supported by a large copper growth pipeline and a pathway to about 2 million tonnes of attributable copper production in the 2030s.
Caption
BHP Group Limited has increased its copper production outlook for 2026.
