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Highlights
- Copper output climbs 10% year-on-year
- Iron ore production stable year-on-year
- Steelmaking coal and nickel see steep declines
BHP Group Ltd (ASX:BHP) has released its operational update for the third quarter of FY25, showcasing resilience in key commodities despite challenging global and weather-related conditions. The mining giant continues to reinforce its position with solid performance in iron ore and copper, while navigating headwinds in other segments.
For the three months ending 31 March 2025, BHP reported iron ore production of 61.8 million tonnes, remaining unchanged from the same quarter last year. However, this marks a 7% decline compared to the second quarter of FY25. The company attributed strong supply chain performance, supported by improvements from its 2024 port debottlenecking project, for maintaining solid output levels. Nevertheless, weather disruptions impacted the overall performance.
Copper stood out this quarter, with production reaching 513,200 tonnes—up 10% compared to FY24 Q3. This was primarily driven by a 20% boost in output at the Escondida mine and strong contributions from both Spence and Copper South America operations. On a quarter-on-quarter basis, copper output remained flat, but still reflects consistent operational strength.
Conversely, steelmaking coal production saw a sharp 36% year-on-year drop to 3.9 million tonnes. Energy coal also declined by 13% to 3.6 million tonnes. The company's nickel production faced an even steeper fall, plunging 88% to 2,300 tonnes due to a transition into temporary suspension. Meanwhile, progress on the Jansen potash project continues, with stage 1 reaching 66% completion and stage 2 now at 8%.
BHP’s CEO highlighted the group’s operational resilience amid complex market dynamics. He noted record nine-month production figures for both copper and iron ore, underscoring the company’s ability to manage supply chain efficiency from pit to port. Despite the highest rainfall season in over a decade affecting Queensland operations, steelmaking coal volumes saw a modest quarter-on-quarter rise.
The company also emphasized its efforts toward diversity and workforce advancement, having achieved 40% female representation globally—up 23 percentage points since 2016. Leadership views this progress as a strategic advantage in addressing industry-wide talent shortages.
BHP remains cautious on the broader economic outlook. While tariffs have had minimal direct impact, the effects of slower global growth and evolving trade environments could influence future demand. The company continues to focus on leveraging its tier-one assets and high-return growth projects to drive long-term value through cycles.
