By Digifin Pty Ltd · About this coverage
Key Points
- Copper production down 19% to 400.7 kt
- Iron ore production up 4% to 66.5 Mt, with Q1 records at WAIO mine and port
- Average realised copper price US$7.01/lb, up from US$4.59/lb
- FY27 production guidance unchanged across copper, iron ore and coal
- US$0.8 bn pre-commitment funding approved for the Escondida New Concentrator
About BHP (ASX:BHP)
BHP Group Limited is an ASX-listed mining company headquartered in Melbourne. It produces copper, iron ore and steelmaking coal, with major operations including the Escondida mine in Chile, Western Australia Iron Ore in the Pilbara and the BHP Mitsubishi Alliance coal joint venture in Queensland. It is developing the Jansen potash project in Canada, reports in US dollars, and also has listings in London and Johannesburg.
BHP (ASX:BHP)'s September quarter operational review reports lower copper output from planned grade declines and disruptions, record mine and port performance at Western Australia Iron Ore, and no change to FY27 production guidance.
Copper production fell 19% on Q1 FY26 to 400.7 kt. Escondida produced 252.6 kt, down 23%, reflecting a planned lower feed grade of 0.81% (Q1 FY26: 0.94%), scheduled maintenance, a temporary suspension of mining after a fatal incident on 23 September, and severe weather. Copper South Australia fell 16% to 60.7 kt, mainly because of the Carrapateena conveyor failure; the conveyor is now operating at full capacity. Iron ore production rose 4% to 66.5 Mt, including 64.3 Mt from WAIO, and BMA steelmaking coal was 4.9 Mt. Average realised prices were US$7.01/lb for copper (Q1 FY26: US$4.59/lb), US$76.27/wmt for iron ore (Q1 FY26: US$84.04/wmt) and US$242.82/t for steelmaking coal (Q1 FY26: US$180.67/t). FY27 guidance is unchanged at 1,650 to 1,800 kt of copper, 260 to 272 Mt of iron ore and 18.5 to 20.5 Mt from BMA. US$0.8 bn (100% basis) of pre-commitment funding was approved for the Escondida New Concentrator, and Jansen Stage 1 is 87 per cent complete.
Investigations into the deaths at Escondida and Peak Downs are ongoing. The Escondida funding covers engineering, permitting and execution readiness only, and BHP says more detail on its Copper South Australia strategy will come at its November site visit.
Source: BHP Group Limited (ASX:BHP), 20 October 2026. Summary content supplied by Digifin Pty Ltd.
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