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BHP ‘in good shape’, says Henry as miner reports strong production results

BHP CEO Mike Henry

BHP CEO Mike Henry

21st January 2025

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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The world’s biggest listed miner, BHP, on Tuesday announced strong production results for the first half of the financial year, with significant gains in its flagship copper and iron-ore divisions.

The company’s Escondida mine in Chile achieved a ten-year production record, driving a 10% increase in overall copper volumes, while iron-ore production from its Western Australia Iron Ore (WAIO) operations set a half-year shipment record.

“BHP delivered safe and reliable performance in the first half. Our flagship copper, iron-ore and steelmaking coal assets delivered particularly strong production in the period,” said CEO Mike Henry.

He attributed WAIO’s shipping record to supply chain improvements following the completion of major debottlenecking at the port.

At Escondida, half-year copper production rose 22% compared to the same period last year, to 644 000 t. The company has maintained its copper production guidance of 1.85-million to 2.05-million tonnes for the full year, with the exception of Copper South Australia, where output expectations have been lowered to between 300 000 t and 325 000 t due to weather-related disruptions.

In iron-ore, BHP’s WAIO operations produced 131-million tonnes for the half-year, a 1% increase. The ramp-up of the South Flank mine, coupled with supply chain efficiencies from the recently completed Port Debottlenecking Project, contributed to the record shipment volumes. BHP expects full-year iron ore production to be in the upper half of its guidance range of 255-million to 265.5-million tonnes.

The company also reported a 14% increase in steelmaking coal production from its BMA operations, excluding contributions from the divested Blackwater and Daunia mines. This improvement was attributed to enhanced truck productivity and better strip ratios.

While energy coal production remained steady, BHP noted ongoing challenges, including unfavourable weather conditions.

Meanwhile, Henry said BHP had made further progress on its growth pathways in future-facing commodities.

This month, the company completed the formation of Vicuña Corp. with Lundin Mining to advance the Filo del Sol and Josemaria projects in Argentina, which he said was considered to be “one of the most significant global copper discoveries in decades”.

In Canada, the Jansen Stage 1 potash project is now 63% complete, with first production scheduled for late 2026, and BHP continues to execute Stage 2 in parallel.

Henry emphasized BHP’s commitment to maintaining strong momentum into the second half of the financial year, supported by stable production and cost discipline across its portfolio. “BHP is in good shape and we have a clear pathway for growth,” he said.

Edited by Creamer Media Reporter

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