BHP Copper Production Falls 19% With FY27 Guidance Unchanged

BHP Group reported copper production of 400.7 thousand tonnes (kt) for the quarter ended 30 September 2026, down 19% from 493.6 kt a year earlier, and kept full-year production guidance unchanged across all commodities, according to the company’s operational review, published on 20 October 2026.

The review disclosed two fatal incidents during the period. A fatal incident involving an employee occurred at the Escondida copper mine in Chile on 23 September 2026 and led to a temporary suspension of all mining activities at the operation; BHP said an investigation is underway and it is working closely with local authorities. At BHP Mitsubishi Alliance (BMA), operations at all mines were suspended following the fatality of a team member, with mining suspended for one week at Peak Downs and for 24 hours across other operations. Investigations are ongoing.

“The deaths of two colleagues at Escondida and Peak Downs are a profound loss. Our thoughts remain with their families and friends. No loss of life is acceptable,” Chief Executive Officer Brandon Craig said in the release, adding that BHP will keep strengthening the controls that keep people safe in its pursuit of being a fatality-free business.

Total copper production fell to 400.7 kt from 493.6 kt in the prior corresponding period. The average realised copper price was US$7.01 per pound, up 53% from US$4.59 per pound a year earlier and up 7% on the June 2026 quarter; the realised prices are provisional, unaudited estimates. FY27 copper production guidance remains unchanged at between 1,650 and 1,800 kt.

At Escondida, in which BHP holds a 57.5% interest, production fell 23% to 252.6 kt on a 100% basis. The review attributed the decrease to lower concentrate production, reflecting a planned lower concentrator feed grade of 0.81%, compared with 0.94% a year earlier, and scheduled maintenance, while the safety suspension and severe weather in July and August 2026 constrained operational logistics and truck fleet utilisation. Cathode production increased, supported by higher Full SaL recoveries and improved sulphide leaching performance. A new collective agreement with the operation’s Union N°2 of Supervisors was signed and became effective for 36 months from 14 October 2026. FY27 production guidance remains unchanged at between 1,000 and 1,100 kt, and full-year concentrator feed grade guidance of approximately 0.70% is also unchanged.

At Pampa Norte’s Spence operation, production fell 15% to 47.4 kt, which the review attributed to a planned lower feed grade of 0.53%, down from 0.65% a year earlier, and ongoing challenges in managing ore variability. FY27 guidance remains unchanged at between 210 and 230 kt, with volumes weighted to the second half. BHP said progress continues toward first production from the Concentrator Upgrade Recovery project in FY28 and the Spence Chalcopyrite Leaching project in CY28.

Copper South Australia production fell 16% to 60.7 kt, primarily due to the underground conveyor belt failure at Carrapateena disclosed with the FY26 results. A replacement belt was installed and operational within seven weeks, followed by a progressive ramp-up through September, and the conveyor is now operating at full capacity. Olympic Dam started to build anode inventory as planned ahead of the Smelter Campaign Maintenance 27 program scheduled for the first half of FY28, while at Prominent Hill concentrate sales exceeded production during the quarter, reflecting the drawdown of inventory built up in the second half of FY26. FY27 guidance remains unchanged at between 290 and 320 kt.

At Antamina in Peru, in which BHP holds a 33.75% interest, copper production increased 18% to 40 kt, which the review attributed to planned higher feed grades and strong operational performance, while zinc production decreased 70% to 11 kt on planned lower feed grades. FY27 copper guidance of between 120 and 140 kt and zinc guidance of between 35 and 55 kt are unchanged.

Iron Ore and Coal

Group iron ore production increased 4% to 66.5 million tonnes (Mt), with FY27 guidance unchanged at between 260 and 272 Mt. Western Australia Iron Ore (WAIO), in which BHP holds an 85% interest, produced 64.3 Mt, or 71.9 Mt on a 100% basis, and the review said first-quarter records were achieved at both the mine and port during a period of significant planned maintenance. FY27 WAIO guidance remains unchanged at between 253 and 264 Mt, or between 286 and 298 Mt on a 100% basis. The average realised iron ore price was US$76.27 per wet metric tonne on a free-on-board basis, down 9% from US$84.04 a year earlier.

A major rebuild of Car Dumper 4 at Port Hedland had a 1.4 Mt volume impact on a 100% basis in the quarter and is approximately 40% complete, on track for completion in the first half of FY27. A sixth car dumper, CD6, is on track for completion in the fourth quarter of FY28 as part of investments BHP said are intended to deliver production above 305 Mt by the end of FY28. The Western Ridge Crusher project remains on track, with first ore scheduled for the first half of FY27. At Samarco in Brazil, production rose 4% to 2.2 Mt, or 4.3 Mt on a 100% basis, which the review attributed to strong concentrator performance; FY27 guidance remains unchanged at between 7.5 and 8 Mt.

BMA steelmaking coal production rose 1% to 4.9 Mt, or 9.8 Mt on a 100% basis, with the average realised price up 34% to US$242.82 per tonne. FY27 guidance remains unchanged at between 18.5 and 20.5 Mt, or between 37 and 41 Mt on a 100% basis, with volumes weighted to the second half, and a longwall move at Broadmeadow is scheduled to commence late in the second quarter of FY27.

NSW Energy Coal production rose 26% to 4.4 Mt, which the review attributed to higher bypass coal as mining progressed into lower strip ratio areas and to improved wash plant throughput. The average realised energy coal price rose 23% to US$116.60 per tonne, from US$95.18 per tonne a year earlier. FY27 guidance remains unchanged at between 14 and 16 Mt, with volumes weighted to the first half.

Growth Projects and Portfolio

“We are building the next phase of growth in copper and potash,” Craig said. At Escondida, US$0.8 billion on a 100% basis of pre-commitment funding was approved to enable further engineering, permitting and execution readiness for the Escondida New Concentrator.

The Jansen Stage 1 potash project in Canada is 87% complete, with estimated project expenditure of US$8.4 billion for capacity to produce 4.15 million tonnes per annum and first production targeted for mid-CY27. Jansen Stage 2 is 18% complete, with estimated expenditure of US$6.9 billion covering additional mining districts, completion of second shaft hoist infrastructure, expansion of processing facilities and addition of rail cars for an incremental 4.36 million tonnes per annum, with first production targeted for late FY31.

BHP also reported a first-time underground block cave Mineral Resource at Olympic Dam of 10,730 Mt at 0.59% copper, 0.19 kg/t uranium oxide (U3O8), 0.21 g/t gold and 1 g/t silver, detailed in the full review document. The updated total classified underground Mineral Resource is estimated to contain 88.1 Mt of copper, 2.8 Mt of U3O8, 103 million ounces of gold and 498 million ounces of silver, figures the review said are calculated from rounded total resource tonnages and grades and are not an estimate of recoverable metal. Ore Reserves remain unchanged from the FY26 Annual Report, the block cave resource has not been converted to Ore Reserves, and the review said block caving remains at an early stage of assessment, with its potential development timeframe not yet known.

BHP said it is advancing a strategy to grow Copper South Australia’s production to approximately 500 ktpa by 2035 and up to 650 ktpa by 2040, with further detail to be provided at a November site visit, and renamed the Oak Dam exploration project “Ankata” in recognition of the cultural significance of the area to the Kokatha people.

In September 2026, BHP signed a memorandum of understanding with KGHM Polska Miedź S.A., the 55% owner of Sierra Gorda, to explore opportunities to collaborate and unlock synergy value at Spence and Sierra Gorda, with focus areas including technical expertise, exploration and future development projects. BHP also completed a transaction with Faraday under which it divested its San Manuel legacy asset and increased its interest in the emerging US copper developer to 32% on a non-diluted basis.

In July 2026, BMA became BHP’s first operated Australian asset to reach 100% renewable electricity, based on current forecast demand. BHP also partnered with Amazon Web Services (AWS) on what it described as an industry-first pilot to sell credits to AWS for lower greenhouse gas emissions associated with copper from Escondida, which BHP said is intended to help develop a market-based mechanism connecting lower-emissions copper production with customer demand.

Minerals exploration and evaluation expenditure was US$87 million for the quarter, compared with US$90 million a year earlier, of which US$67 million was expensed, compared with US$76 million. FY27 unit cost guidance is unchanged across the portfolio: Escondida at US$1.20 to US$1.50 per pound, Spence at US$2.40 to US$2.70 per pound, Copper South Australia at US$0.30 to US$0.80 per pound, WAIO at US$20.25 to US$21.75 per tonne and BMA at US$126 to US$137 per tonne.