On Tuesday, BHP Billiton, the world's largest publicly traded mining company, expressed an optimistic outlook on global iron ore demand while maintaining stable production of its key growth pillar—copper—amid a rise in first-quarter copper output. CEO Mike Henry stated, “The overall macroeconomic signals for commodity demand remain strong, and global economic growth expectations are being revised upward.” Earlier this month, competitor Rio Tinto highlighted a rebound in China's iron ore demand as global economies ramp up investments ahead of upcoming tariff policies.
For the three months ending September 30, BHP's iron ore production in Western Australia, based on 100% ownership, totaled 70.2 million metric tons, slightly below market estimates of 71.55 million metric tons. This region’s output was 71.6 million metric tons in the same period last year. Total iron ore production fell 0.1% year-over-year to 64.1 million metric tons. Sales volume in Western Australia remained largely flat compared to last year, but revenue from high-value lump ore increased by 5%. BHP noted that the major rebuild of the No. 3 unloader at Port Hedland is approximately 8% ahead of schedule, leading to a reduction in iron ore output of 4.3 million metric tons. This giant piece of equipment is used to unload iron ore from trains for export, and its overhaul extends its lifespan and improves reliability for continued high-intensity use.
Looking ahead, BHP maintains its fiscal year 2026 production forecast for Western Australian iron ore at 284 million to 296 million metric tons (based on 100% ownership).
In addition, BHP’s copper production for the quarter increased by 4% to 493,600 metric tons, primarily driven by higher output from the massive Escondida project in Chile, which effectively offset declines from other mines. With an increasingly optimistic industry outlook, major mining companies are actively expanding their copper operations. This red metal is favored for its crucial role in renewable energy and data infrastructure. BHP predicts a global copper demand surge of 70% by 2050. By enhancing capacity at existing operations in Chile and Australia, BHP has emerged as the world's largest copper producer with an annual output of approximately 2 million metric tons over the past year.
Increasing copper production is a key strategic focus for CEO Henry, who has been in office for six years. The group maintains its copper production forecast for 2026. Henry noted, “In the copper sector, significant production disruptions at some competitor mines have tightened the overall market fundamentals, benefiting our world-class asset portfolio.”
In the potash sector, despite seeking long-term market breakthroughs, BHP has recently postponed its expansion plans for the Jansen project due to cost overruns and ample market supply. However, the company remains optimistic, viewing potash as a long-term opportunity comparable to its iron ore business in terms of scale and profitability. BHP indicated that both phases of the Canadian Jansen potash project are progressing steadily, with the first phase 73% complete and expected to start production in 2027; the second phase is 13% complete.