Mining giant BHP Group announced on Tuesday that its iron ore production for the first half of the financial year, ending in December, reached a historic high.
The Melbourne-headquartered miner also revealed that costs for its Jansen potash project in Canada have increased by 20%.
BHP stated that its iron ore production from its Western Australia operations, calculated on a 100% basis, hit a record 146.6 million tonnes during the six months ended December 31, marking a 1% increase compared to the same period last year.
For the December quarter, iron ore production (on a 100% basis) was 76.3 million tonnes, up from 72.2 million tonnes in the September quarter.
The company maintained its full-year iron ore production forecast for the current financial year at 284 to 296 million tonnes, noting that the strong first-half output has positioned it well for a good start to the typically rain-affected third quarter.
BHP raised the lower end of its copper production guidance. The company now anticipates copper production for the fiscal year ending June 30 to be between 1.9 and 2.0 million tonnes, slightly higher than the previous forecast of 1.8 to 2.0 million tonnes. This adjustment was attributed to the robust operational performance of its copper assets.
BHP also kept its annual production forecast for coking coal, produced in alliance with Mitsubishi, unchanged. However, it cautioned that output is likely to be at the lower end of the projected range due to persistent geotechnical challenges at its Broadmeadow mine.
BHP is scheduled to release its half-year financial report on February 17.
The company further indicated that the total capital expenditure estimate for the first phase of its Jansen project has increased to $8.4 billion, up from the previously announced range of $7.0 to $7.4 billion in July 2025.
This cost escalation reflects construction hours and material quantities not fully captured in the earlier estimate. When the project was approved in August 2021, the initial capital cost for the Jansen Phase 1 was set at $5.7 billion.