BHP, the world’s largest diversified miner, has lifted annual copper production 8 % to an all-time high of 2.02 million t for the financial year to 30 June 2025, brushing the top of its 1.845-2.045 million t guidance range. The gains were driven by richer ore at Chile’s Escondida mine, where head grade climbed to 1.02 % from 0.88 % a year earlier. Iron-ore volumes also set a record at 263 million t, while the company confirmed that its Western Australia nickel operations will remain suspended beyond 2026 amid a global glut.
Copper Output Hits Record as Escondida Delivers
The flagship Escondida complex produced 1.3 million t of copper—its strongest performance in 17 years—after concentrator throughput and recoveries hit fresh highs and the Full SaL leaching project began contributing cathode in the June quarter. The mine accounted for two-thirds of BHP’s total copper uplift. For fiscal 2026, BHP guides group output to 1.8-2.0 million t, flagging a planned return to lower grades at Escondida and maintenance at Olympic Dam in Australia.
Nickel Business Faces Protracted Shutdown
BHP’s Nickel West division, idled last October, remains under strategic review. Management is weighing a sale or an extended care-and-maintenance period until at least early 2027, citing oversupply and weak battery-sector demand. The decision underscores industry-wide pressure: LME nickel prices hover around $18,300 /t, less than half their 2022 peak, while Indonesian output continues to expand.
Market Impact and Pricing
Copper’s tight supply picture contrasts with nickel’s surplus. LME cash copper traded at roughly $9,586 /t on 17 July, steady year-on-year and buoyed by Chinese grid investment and data-centre demand. Analysts see limited downside while supply disruptions persist in Panama and Peru. Iron-ore prices, meanwhile, have edged higher on restocking by Chinese mills but remain well below 2021 records, containing inflationary pressures in steelmaking.
Copper Context
Copper is indispensable to electrification: an electric vehicle uses roughly three times more copper than an internal-combustion car, while grid-scale renewables require up to five tonnes per megawatt. Global demand grew 2 % to 26 million t in 2024 and is forecast to outstrip new supply this decade as grade declines offset mine expansions. LME inventories sit near 160,000 t—about four days of global consumption—keeping the market vulnerable to disruption.
Company Background and Market Context
Melbourne-headquartered BHP generated $54 billion of revenue in FY 2024, with iron ore contributing 55 % of EBITDA and copper 32 %. The group’s balance-sheet strength—net debt of $12.4 billion, 0.6× EBITDA—affords flexibility to advance growth options such as Escondida’s desalination expansion and the delayed Jansen Stage 1 potash project in Canada, now slated for mid-2027 start-up. BHP is also exploring copper deals after failing to secure Anglo American in May, signalling confidence in the metal’s long-term fundamentals.
