BHP Sees Record Pilbara Output Despite Cyclones, Raises Copper Outlook

BHP Group (ASX: BHP), the world’s largest listed miner, reported a slight dip in third-quarter iron ore production due to cyclones in Western Australia. Despite the weather-related disruptions from Cyclone Zelia in February and Cyclone Sean in January, BHP achieved record nine-month output at its Pilbara operations, supported by increased activity at South Flank and Mining Area C following last year’s ramp-up.

Iron ore production from Western Australia slipped to 67.8 million metric tons in the March quarter, down slightly from 68.1 million tons a year earlier, aligning with analysts’ expectations of 68.03 million tons, according to Visible Alpha. Iron ore remains BHP’s key earnings driver, contributing more than half of its total revenue.

BHP shares edged up 0.6% to A$36.2 in early trade, tracking a 1% rise in the broader mining sub-index.

Copper output rose 10% year-on-year to 513,200 metric tons, fueled by a strong 20% surge in production at the Escondida mine in Chile, credited to improved operations. On the back of this, BHP now expects its fiscal 2025 copper output from Chile to reach the upper half of its guidance range.

The company maintained its 2025 cost guidance for all operations, except for its BMA coal joint venture, where adverse weather and geological issues at Broadmeadow are expected to push costs higher.

BHP is actively leveraging its strong iron ore revenue to invest in future-facing commodities like copper and potash, aligning with the global energy transition. The miner remains focused on expansion and cost efficiency as it navigates supply chain and weather-related challenges across operations.