How Did BHP Achieve Record Copper and Iron Ore Production in FY25?
BHP has reported record copper and iron ore production for FY25, delivering robust financial results despite a challenging commodity price environment. The company is advancing key growth projects and maintaining strong capital discipline.
- Record copper production exceeds 2 million tonnes, up 28% since FY22
- Iron ore production at WAIO hits new high of 290 million tonnes
- Underlying EBITDA of US$26 billion with a 53% margin
- Capital expenditure planned at US$11 billion for FY26 and FY27 focusing on potash and copper growth
- Operational greenhouse gas emissions reduced by 36% since FY20; gender balance achieved globally
Operational Excellence Drives Record Production
BHP has delivered a standout operational performance in the fiscal year ended June 2025, setting new production records in copper and iron ore. Copper output surpassed 2 million tonnes for the first time, marking a 28% increase over three years, while iron ore production at the Western Australia Iron Ore (WAIO) operations reached 290 million tonnes, reinforcing BHP's position as the world's lowest-cost major iron ore producer.
These achievements underpin a resilient financial performance, with underlying EBITDA of US$26 billion and a robust 53% margin, despite an 8% decline in revenue driven by lower iron ore and coal prices. The company’s attributable profit rose 14% to US$9 billion, reflecting operational strength and cost discipline.
Focused Capital Allocation and Growth Pipeline
BHP is maintaining disciplined capital expenditure, with plans to invest approximately US$11 billion in both FY26 and FY27, before moderating to an average of US$10 billion annually through FY28 to FY30. The bulk of this investment targets future-facing commodities, particularly potash and copper.
Key growth projects include the Jansen potash mine in Canada, now 68% complete with first production expected by mid-2027, and copper expansions in Chile and South Australia. The company also acquired a 50% stake in the Vicuña joint venture, which holds one of the largest copper discoveries in recent decades, signaling confidence in long-term copper demand.
Sustainability and Social Progress
BHP continues to advance its sustainability agenda, achieving a 36% reduction in operational greenhouse gas emissions since FY20 and signing contracts for ammonia dual-fuelled bulk carriers to reduce shipping emissions. The company reached gender balance across its global workforce and increased Indigenous procurement spend by 40%, reflecting a commitment to inclusive growth and community partnerships.
Environmental stewardship is also a priority, with plans underway for a 158,000-hectare conservation project in Copper South Australia, underscoring BHP’s focus on nature-positive management practices.
Navigating a Complex Economic Landscape
The global economic outlook remains mixed, with growth expected to moderate to around 3% in 2025 amid trade policy uncertainties. However, commodity demand, particularly from China and India, remains resilient. Chinese copper demand outperformed expectations, supported by infrastructure investment and manufacturing activity, while iron ore demand held firm despite softness in the real estate sector.
BHP’s diversified portfolio and low-cost operations position it well to navigate these dynamics, with the company maintaining a strong balance sheet despite an increase in net debt to US$12.9 billion to fund growth and shareholder returns.
Bottom Line?
BHP’s record operational performance and strategic investments position it well for long-term growth, but market and regulatory uncertainties warrant close attention.
Questions in the middle?
- How will evolving trade policies and tariffs impact BHP’s copper export strategy?
- What are the implications of the increased capital expenditure estimates and timeline revisions for the Jansen potash project?
- How will BHP balance its growth ambitions with sustainability commitments amid rising operational costs?
