BHP lifts annual iron ore, copper output; flags higher costs, delays on potash project

BHP lifts annual iron ore, copper output; flags higher costs, delays on potash project

Mining giant BHP Group (BHP.AX) reported strong financial performance for the year ended June 2025, with record annual production of iron ore and copper. However, the company also warned of potential delays and cost overruns for its Jansen Stage 1 potash project in Canada.

Iron Ore and Copper Production

BHP's iron ore production for the 12 months through June 2025 reached 263.0 million metric tons, a 1% increase from the previous year. This figure beat market expectations and was at the upper end of the company's guidance. The company expects to produce between 258 million and 269 million tons of iron ore in the coming year.

In the copper sector, BHP reported full-year production of around 2.017 million tons, an 8% increase year over year. This output was also above the company's forecast range of 1.845 million to 2.045 million tons. BHP expects to produce between 1.8 million and 2.0 million tons of copper in the year ahead.

Potash Project Delays and Cost Increases

The Jansen Stage 1 potash project in Canada, which is 68% complete, is facing delays and cost overruns. The first production from the mine has been pushed back to mid-2027 from the previously targeted end-2026. The project's capital expenditure estimates have surged to $7.0 billion-$7.4 billion from $5.7 billion, a cost increase of up to 29%. The estimated cost increase is driven by inflationary pressures, design development, scope changes, and lower productivity outcomes over the construction period [1][2].

Divestment Review

BHP is also reviewing the potential divestment of its Western Australia Nickel assets as part of an ongoing balance sheet review. The company is assessing various options, including temporary suspension, restart, or closure, before making a final decision [1].

References

[1] Reuters. (2025, July 18). BHP logs record copper output, flags Jansen delay cost blowout. Retrieved from https://www.reuters.com/business/bhp-logs-record-copper-output-flags-jansen-delay-cost-blowout-2025-07-17/

[2] Hoyle, R. (2025, July 17). BHP lifts annual iron ore, copper output; flags higher costs, delays on potash project. Retrieved from https://www.tradingview.com/news/DJN_DN20250717010672:0-bhp-lifts-annual-iron-ore-copper-output-flags-higher-costs-delays-on-potash-project/