17 October 2024 |
Operational review for the quarter ended 30 September 2024
Strong operational performance with increased copper, iron ore and coal production.
“BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter. Copper production was up 4% due to higher grade and recoveries at Escondida, and WAIO production was up 3% as we unlocked capacity by completing the debottlenecking work at the port.
We are also seeing signs of stabilisation in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines.
We added to our copper growth prospects in the quarter, announcing a proposed 50/50 joint venture in Argentina with Lundin Mining to advance what we consider to be one of the most significant global copper discoveries in decades.
In Canada, our Jansen Stage 1 potash project is 58% complete after a productive summer period with first production scheduled in around two years.
China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant fiscal stimulus is on the horizon. Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.”
Mike Henry
BHP Chief Executive Officer
Summary
| Operational excellence |
| On track to meet FY25 production guidance |
| Strong operational performance with copper production increasing 4% driven by higher concentrator feed grades and recoveries at Escondida. Production at WAIO increased 2% following commissioning of the Port Debottlenecking Project (PDP1) and completion of the South Flank ramp up. |
Climate Transition Action Plan
We released our second Climate Transition Action Plan (CTAP) which lays out our climate strategy and GHG emissions goals and targets, and provides an in depth view of our plans and how we’re progressing against them. The CTAP will be put to a shareholder advisory vote at our upcoming AGM on 30 October 2024. We also announced collaborations with India’s JSW Steel and Carbon Clean and Steel Authority of India to support decarbonisation technology in steelmaking.
| Portfolio |
| Increased exposure to copper |
| In July, we agreed to jointly acquire Filo Corp. with Lundin Mining through a Canadian plan of arrangement. In September, the Filo Corp shareholders approved the plan of arrangement. We also agreed to form a 50/50 joint venture with Lundin Mining to consolidate and advance the Filo del Sol and Josemaria copper projects. We expect the transaction to complete in Q3 FY25, subject to regulatory approvals. |
Copper outlook supports growth pipeline
We published our outlook for the copper market, including copper demand, copper supply and long-term copper pricing. We expect copper demand to grow by 70% by 2050, as a result of traditional economic growth, electrification and the energy transition, and digital infrastructure (including data centres). We will be hosting an investor site visit to our Chilean copper assets in November 2024 to outline our attractive organic copper growth pipeline in the region.
| Production | Quarter performance | Production guidance | ||||
| Q1 FY25 | v Q4 FY24 | v Q1 FY24 | Current FY25 guidance | |||
| Copper (kt) | 476.3 | (6%) | 4% | 1,845 – 2,045 | ||
| Escondida (kt) | 304.2 | (2%) | 11% | 1,180 – 1,300 | Unchanged | |
| Pampa Norte (kt)i | 60.1 | (9%) | (23%)i | 240 – 270i | Unchanged | |
| Copper South Australia (kt) | 73.4 | (18%) | 2% | 310 – 340 | Unchanged | |
| Antamina (kt) | 36.3 | (5%) | 12% | 115 – 135 | Unchanged | |
| Carajás (kt) | 2.3 | 10% | 10% | – | – | |
| Iron ore (Mt) | 64.6 | (7%) | 2% | 255 – 265.5 | ||
| WAIO (Mt) | 63.4 | (7%) | 2% | 250 – 260 | Unchanged | |
| WAIO (100% basis) (Mt) | 71.6 | (7%) | 3% | 282 – 294 | Unchanged | |
| Samarco (Mt) | 1.3 | 23% | 4% | 5 – 5.5 | Unchanged | |
| Steelmaking coal – BMA (Mt) | 4.5 | (8%) | (19%)ii | 16.5 – 19 | ||
| BMA (100% basis) (Mt) | 9.0 | (8%) | (19%)ii | 33 – 38 | Unchanged | |
| Energy coal – NSWEC (Mt) | 3.7 | (2%) | 2% | 13 – 15 | Unchanged | |
| Nickel – Western Australia Nickel (kt) | 19.6 | (15%) | (3%) | – | – | |
i Q1 FY24 includes 9.5 kt from Cerro Colorado which entered care and maintenance in December 2023. Excluding these volumes, Q1 FY25 production decreased 13%. Production guidance for FY25 is for Spence only. Refer to production and sales report and copper for further information.
ii Q1 FY24 production includes 1.8 Mt (3.7 Mt on a 100% basis) from Blackwater and Daunia mines which were divested on 2 April 2024. Excluding these volumes, Q1 FY25 production increased 20%. Refer to production and sales report and steelmaking coal for further information.