By Rhiannon Hoyle

BHP Group upgraded its annual copper-production guidance amid record-high prices for the industrial metal, but announced another cost overrun on its giant potash project in Canada.

BHP, the world's biggest miner by market value, said Tuesday it now expects to produce between 1.9 million and 2.0 million metric tons of copper in its fiscal year through June, compared to a prior estimate of between 1.8 million and 2.0 million tons.

Higher-than-anticipated output of the metal is underpinned by a strong performance at the massive Escondida mine in Chile and will help the miner further capitalize on record prices, said Chief Executive Mike Henry.

U.S. copper futures have surged to an all-time high as investors bet on a shortage of the metal, used widely in construction, electronics and auto manufacturing. According to BHP, "the strong copper price is being driven by healthy demand and by supply disruptions at a number of competitors."

BHP reported second-quarter copper output of 490,500 tons, down 1% on the quarter immediately prior and 4% on a year ago. Total first-half production was flat compared with the same period a year earlier.

BHP last year unsuccessfully sought to buy rival Anglo American, arguing that a combination of the companies' prized copper mines and other operations would have significant benefits.

Australia-based BHP has been reshaping its business to bet on an accelerating energy transition and global population growth via investments in copper and potash, a fertilizer ingredient. The miner currently relies on the steel ingredient iron ore for more than half its earnings.

The company last year flagged rising costs at the Jansen potash project in Canada's Saskatchewan province, its only major development currently under construction. Then, the miner said the first stage of the project could cost between $7.0 billion and $7.4 billion to build, up from $5.7 billion previously, but said its estimates were being reviewed.

On Tuesday, BHP said it now expects the first stage of Jansen will cost $8.4 billion, including contingencies. It cited "construction hours and quantities of materials that were not included in previous execution cost estimates" for the latest overrun.

The head of BHP's Americas business, Brandon Craig, said the miner remains positive about progress on the Jansen project, where the first stage of development is 75% complete.

"Jansen is an important pillar in BHP's long-term growth strategy and is a long-life, low cost expandable asset that is expected to generate benefits for shareholders for decades," Craig said.

BHP continues to review its cost estimate for the second stage of the project, and said it expects to update investors in the fourth quarter of its fiscal year.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 19, 2026 19:23 ET (00:23 GMT)

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