LAGOS, Oct 21 – BHP’s copper production fell 19% to 401,000 tonnes in the quarter ended September 30, as planned grade declines, scheduled maintenance and temporary operational disruptions weighed on output. The mining group maintained its copper production guidance for financial year 2027 (FY27) at between 1.65 million and 1.8 million tonnes.
Chief Executive Officer Brandon Craig outlined the operating results on Tuesday, October 20, against a backdrop of geopolitical tensions, trade uncertainty and elevated energy and freight costs affecting the mining industry.
“Global markets remain volatile, with geopolitical tensions, trade uncertainty, and elevated energy and freight costs continuing to create headwinds across the mining industry,” Craig stated in BHP’s operational review.
He added that commodity demand remained resilient, supported by industrialisation and urbanisation in China and India, alongside growing investment in data centres and related infrastructure worldwide. Craig said these trends were reinforcing the long-term outlook for copper.
The quarterly decline in copper output reflected planned reductions in ore grades and scheduled maintenance, compounded by severe weather, safety-related work stoppages and a conveyor failure.
Fatalities at Escondida and Peak Downs
Craig also addressed the deaths of two employees at BHP operations, describing the fatalities at Escondida in Chile and Peak Downs in Australia as “a profound loss”.
The latest fatality occurred during maintenance work on the Line 2 semi-autogenous grinding (SAG) mill at the Laguna Seca concentrator at Escondida. An earlier fatality occurred at the BMA Peak Downs coal mine in Queensland, Australia.
“Investigations are underway and we will keep strengthening the controls that keep people safe in our pursuit of being a fatality-free business,” Craig said.
The incidents occurred as the company continued maintenance and production activities across its global operating portfolio.
Iron Ore and Coal Operations Start FY27 Strongly
BHP said its FY27 had begun with record performance at both mine and port operations at Western Australia Iron Ore (WAIO).
Its BHP Mitsubishi Alliance (BMA) and New South Wales Energy Coal operations also recorded higher production than in the corresponding period a year earlier.
The performance across these businesses provided a contrast to the weaker quarterly copper output, as BHP continued to manage production across its major commodities.
Copper and Potash Projects Drive Growth Strategy
BHP is advancing investments intended to expand its copper production capacity and diversify its commodity portfolio through potash.
Craig said the company was strengthening its copper position through funding for the Escondida New Concentrator in Chile, resource development at Copper South Australia and expansion of its copper growth pipeline across the Americas.
The company is also progressing its Jansen potash project in Saskatchewan, Canada. Stage 1 was 87% complete at the time of the operational review, with first production expected in mid-2027.
The project is expected to introduce potash as a new commodity within BHP’s portfolio, adding another source of production alongside its established iron ore, copper and coal businesses.
Despite the quarterly decline in copper production, BHP left its FY27 output guidance unchanged at 1.65 million to 1.8 million tonnes, indicating that the company continues to target production within its existing annual range while advancing its longer-term growth projects.
