BHP Q4 Iron Ore Output Rebounds as Copper Prices Boost Revenue

BHP Group (ASX: BHP), the world’s largest mining company, reported a strong recovery in fourth-quarter iron ore production after weather-related disruptions affected operations earlier in the year. The miner also posted a modest increase in copper output, while benefiting from significantly higher copper prices.

West Australian iron ore production climbed 7% quarter-over-quarter to 74.8 million metric tons in the three months ended June 30, recovering from interruptions caused by Cyclone Zelia, which temporarily halted operations at Port Hedland during the March quarter. Although quarterly production was 3% lower than a year earlier, BHP achieved a record annual iron ore output of 291.2 million metric tons for fiscal 2026, meeting its guidance range of 284 million to 296 million metric tons.

Looking ahead, BHP expects fiscal 2027 iron ore production to range between 286 million and 298 million metric tons. The company’s average realized iron ore price was $83.58 per metric ton during the quarter, down 2% from the previous quarter but 5% higher year-over-year.

Despite the production rebound, BHP faces fresh challenges at Port Hedland, the world’s largest iron ore export hub, where hundreds of workers are scheduled to strike after labor negotiations with a major union failed to produce an agreement. Any prolonged disruption could affect future shipments.

Copper production rose 3% from the previous quarter to 491,900 metric tons, although it declined 5% from a year earlier due to operational issues in Chile and South Australia. Annual copper production totaled 1.95 million metric tons, remaining within BHP’s fiscal 2026 guidance of 1.9 million to 2.0 million metric tons.

For fiscal 2027, BHP expects copper production to fall to between 1.65 million and 1.80 million metric tons, citing unexpected operational challenges in South Australia.

However, stronger copper prices helped offset lower output. BHP’s average realized copper price reached $6.53 per pound, rising 11% from the previous quarter and 47% year-over-year. Copper prices have surged amid tightening global supplies and growing expectations that artificial intelligence infrastructure and electrification trends will drive long-term demand for the metal.