BHP confident of group’s future growth opportunities, despite warning of lower 2027 copper output

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Global diversified miner BHP produced nearly two-million tonnes of copper and record iron-ore production for the financial year ended June 30, but has substantially lowered its copper production guidance for the 2027 financial year, mainly as a result of a decline in grades at the Escondida mine, in Chile.
The company's copper mines produced 1.95-million tonnes in the 2026 financial year, in line with guidance of 1.9-million to two-million tonnes. Iron-ore output, meanwhile, increased by 1% year-on-year to a record 265-million tonnes, in line with guidance of 258-million to 269-million tonnes.
"We finished the year strongly, delivering safe and reliable operations while setting several performance records across the business.
"For the second consecutive year, we produced around two-million tonnes of copper and delivered record iron-ore production, demonstrating the power of a disciplined operating system and world-class assets.
"We achieved this against a backdrop of stronger realised prices for both copper and iron-ore, with copper prices around 35% higher than a year ago. Cost control was particularly strong, with every asset expected to be within unit cost guidance despite headwinds from inflation, higher diesel prices and global supply chain disruptions," says CEO Brandon Craig.
He adds that the group is also continuing to build the next phase of growth. During the year under review, it progressed applications to restart Cerro Colorado, in Chile, defined development pathways for Copper South Australia, Escondida and Spence, and expanded its future copper options in the US through progress at Resolution and its investment in Faraday, while Vicuña, in Argentina, received Incentive Regime for Large Investments approval.
"In Canada, Jansen is on track to begin potash production next year, adding a new commodity and further diversifying our portfolio.
"We enter the new year with momentum and significant opportunities to accelerate improvements in safety, productivity and reliability through our operating system and the adoption of technology," Craig comments.
COPPER BHP has set its copper guidance for the 2027 financial year at between 1.65-million and 1.8-million tonnes – a year-on-year decrease of about 15%.
For the year ended June 30, the Escondida mine produced 1.26-million tonnes of copper, a 3% year-on-year decline as a result of a planned lower concentrator feed grade of 0.90%, compared with 1.02% the year before.
Concentrator feed grade for the 2027 financial year is expected to be about 0.70% and Escondida is expected to produce between one-million and 1.1-million tonnes of copper for the financial year.
Meanwhile, BHP's Pampa Norte operations, which include the Spence and Cerro Colorado mines, produced 213 000 t of copper for the 2026 financial year – a 21% year-on-year decrease.
Output at the Spence mine decreased as a result of ongoing challenges with processing complex ore at the concentrator and the planned decline in stacked feed grade at the cathode plant.
The Spence Concentrator Upgrade Recovery project, which upgrades the flotation circuit to increase residence time and improve recoveries, was sanctioned in June, with first production expected during the 2028 financial year.
"Once commissioned, we expect the project will allow us to more effectively manage Spence's ore complexity and variability," BHP reports.
The group in June also sanctioned the Spence Chalcopyrite Leaching project, which will include the implementation of BHP's sulphide leaching technology, Simple Approach to Leaching 2, to enable processing of hypogene ores and to use latent capacity in the cathode infrastructure. First production expected in the 2028 calendar year.
Spence is expected to produce between 21...