Australia’s BHP Iron Ore Output Rises 3%
Synopsis
BHP Group has reported a resilient third quarter, with iron ore production rising 3% to 69.8 million tons despite disruption from tropical cyclones in Western Australia. On April 22, 2026, the mining giant confirmed it is maintaining its full-year guidance of 284–296 million tons. While copper output dipped 7% and realised prices for iron ore fell slightly, a successful negotiation with China's state buyer has bolstered the company's outlook. As Brandon Craig prepares to take over as CEO on July 1, BHP remains focused on low-cost operations to navigate global energy pressures.
BHP Group has reported a 3% increase in iron ore production year-on-year driven by excellent performance from Western Australia. In spite of two tropical cyclones and lower prices, the global miner has been able to keep its full-year targets on the radar.
Key Highlights
- BHP’s Iron ore production rose 3% to 69.8 million metric tons for the March quarter
- Mine disturbances caused a 7% drop in copper production to 476,800 tons.
- Iron ore prices dropped 2%, to $85.35 per wet metric tonne
- Brandon Craig is appointed CEO effective 1 July 2026
BHP Reported Increased Quarterly Production Results
BHP iron ore from Western Australia totalled 69.8 million metric tons in the quarter ended March 31. This is an increase of 3% compared to this time last year and was above market composer expectations. Production was steady, but the company was hit by two tropical cyclones at Port Hedland, the world’s largest iron ore export port. Nevertheless, the miner has maintained its annual iron ore output outlook of 284 million tons to 296 million tons despite the extreme weather events.
The Decline in Prices and Affected Products
The main reason for a slight dip in revenue was a 2% drop in the price BHP got for its iron ore this quarter, which is $85.35 per tonne. This happened as global steel prices fluctuated and the conflict in the Middle East put pressure on energy and shipping. But iron ore enjoyed a good quarter while copper was the big loser this time around. Its copper output declined 7% to 476,800 tons hit hard by the performance at its Escondida and Pampa Norte mines in Chile.
BHP also wrapped up a contract with China Mineral Resources Group. This buyer has banned BHP products in the past but it’s now back in better relations. The company also cited that being a low-cost operator is helping it keep pace against rivals at a time of rising industry-wide fuel and other mining costs.
The new leaders and the expert view
The company’s centralised procurement and efficient mines helped it avoid some of the extreme cost pressures arising from the Middle East war, outgoing chief executive Mike Henry said. In March, BHP confirmed Brandon Craig would replace the reigning CEO. Craig, whose background includes decades in executive roles and running the Western Australia iron ore business, will take on responsibilities on July 1, 2026. Analysts say he will work on retaining BHP as the world#39;s top iron ore producer and further build BHP’s copper and potash resources.
FAQs
- What was BHP’s quarterly iron ore production?
BHP hit 69.8 million metric tons, a gain of three per cent from last year.
- Who is the new CEO of BHP?
Brandon Craig will take over from Mike Henry as CEO on July 1, 2026.
- Is BHP still selling iron ore to China?
Yes, BHP has resolved a trade dispute with China’s state buyer, securing ongoing sales to its largest customer.
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