BHP's fiscal Q1 iron ore, copper output rise on year; met coal, nickel production down

Major miner BHP Group booked mixed production results for the first quarter of its 2025 financial year, with iron ore and copper improving and steelmaking coal and nickel falling year over year.

"BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter,” BHP CEO Mike Henry said in the operational results released Oct. 17.

The Australia-headquartered miner said it produced 64.6 million metric tons of iron ore in the quarter ended Sept. 30, up 2% year on year, thanks to increased capacity at its Western Australian Iron Ore business and the resumption of pelletizing plant No. 4 at Samarco in Brazil.

WAIO produced 63.4 MMt of iron ore during the quarter, up 2% year on year, while Samarco’s output rose 4% to 1.3 MMt.

BHP’s copper output jumped 4% on the year to 476,300 metric tons due to higher concentrator feed grade and recoveries at Escondida in Chile and higher productivity at Carrapateena in South Australia, as well as output from Antamina in Peru and Carajas in Brazil.

Escondida produced 304,200 metric tons in Q1, up 11% year on year, Copper South Australia produced 73,400 metric tons, up 2%, Antamina’s output rose 12% to 36,300 metric tons and Carajas’ production rose 10% to 2,300 metric tons.

However, copper output at Pampa Norte in Chile fell 23% on the year to 60,100 metric tons.

BHP's energy coal production at its New South Wales Energy Coal unit increased by 2% to 3.7 MMt, which includes a higher proportion of washed coal. Meanwhile, BHP’s production of steelmaking coal plunged 19% to 4.5 MMt at its BHP Billiton Mitsubishi Alliance operations.

“We are seeing signs of stabilization in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines,” Henry said in the results.

Nickel output in Western Australia also fell 3% to 19,600 metric tons as BHP prepared to temporarily suspend operations at its Nickel West mining complex in Western Australia amid an oversupply in the global market.

The mining giant maintained its fiscal year 2025 production guidance of 1.8-2 MMt for copper, 255-265.5 MMt for iron ore and 16.5-19 MMt for steelmaking coal.

Henry said BHP had added to its copper growth prospects during the quarter, announcing a proposed 50:50 joint venture in Argentina with Lundin Mining to advance a significant global copper discovery.

“China has announced a series of monetary easing policies in an effort to support economic growth and has indicated more significant fiscal stimulus is on the horizon. Upcoming stimulus is likely to focus on relieving local debt, stabilizing the property market and bolstering business confidence," Henry said.

Platts, part of S&P Global Commodity Insights, assessed the IODEX 62% Fe Iron Ore Index at $104.40/dmt CFR North China Oct. 16, down 27% since the start of 2024.