BHP Group on Tuesday struck an upbeat note on global iron ore demand even as it warned of cooling growth in China, while first-quarter output for the steelmaking element slightly missed estimates on maintenance works at Port Hedland.
“Overall macro-economic signals for commodity demand remain resilient, and global growth forecasts are moving higher,” said CEO Mike Henry.
Earlier in the month, rival Rio Tinto flagged Chinese demand had gathered pace as global economies front-loaded investment ahead of looming tariffs.
BHP, the world’s largest listed miner, said iron ore production from its Western Australia mine operations on a 100 per cent basis was 70.2 million metric tonnes (Mt) in the three months ended Sep 30, compared with a Visible Alpha consensus estimate of 71.55 Mt.
BHP had recorded iron ore output from its Western Australian operations of 71.6 Mt a year earlier.
Sales from the operations were broadly in line with the prior year, with BHP reporting a 5 per cent sales rise of higher-value lump.
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The major rebuild of Car Dumper 3 at Port Hedland, which reduced volumes by 4.3 million tonnes on a 100 per cent basis, was completed about 8 per cent ahead of schedule, BHP said.
Car Dumper 3 is a massive machine that unloads iron ore from trains for export and has been rebuilt to extend its life, boost reliability, and keep operations running smoothly after years of heavy use.
BHP kept its fiscal 2026 output forecast for Western Australia iron ore unchanged at between 284 Mt and 296 Mt.
The group’s total copper production for the quarter gained 4 per cent to 493.6 kilo tons and the company kept its 2026 output estimates unchanged.
“In copper, major disruptions at some of our competitors’ mines have tightened overall market fundamentals, benefiting our world-class portfolio of assets,” Henry said.
BHP, which earns most of its profit from iron ore, has been ramping up its push into copper as the metal is seen to have a central role in the transition towards greener forms of energy.
BHP added that both stages of Canada’s Jansen potash project were making solid progress, with Stage 1 being 73 per cent complete and on track to start production in 2027. The Stage 2 has reached 13 per cent completion. REUTERS
