BHP has again proved the strength of its Pilbara operations, posting a third-straight year of record production at Western Australia Iron Ore (WAIO) and extending its push as one of world’s lowest-cost major iron ore producers.
WAIO set multiple records, producing 257 million tonnes in the 2024–25 financial year (FY25) with 290 million tonnes (Mt) produced on a 100 per cent basis. The new South Flank iron ore operation exceeded its nameplate 80Mt capacity in its first full year.
The company credited its integrated rail and port network for underpinning supply chain excellence from pit to port.
“Our iron ore business is a critical part of our future and we have extended our lead as the lowest-cost major iron ore producer globally,” BHP chair Ross McEwan said.
“We have achieved a world-leading position in copper, which is key to renewable energy, electric vehicles and data centres.”
Copper South Australia delivered record quarterly production in the June quarter, helping BHP surpass over 2Mt of copper output globally.
“In FY25, we achieved copper production of over 2 million tonnes for the first time – and have lifted copper production by 28 per cent since FY22,” BHP chief executive Mike Henry said.
The company is exploring avenues to expand its copper portfolio though exploration and assessing pathways to deliver a strategy of up to 650,000 tonnes per annum of copper production from the 100-per-cent-owned Copper South Australia.
BHP’s steelmaking coal business also lifted, with production rising 5 per cent to 18Mt (36Mt on a 100 per cent basis) despite heavy rain and geotechnical challenges. Productivity gains in truck performance were key to offsetting those disruptions.
Financially, BHP generated $US19.5 billion in profit from operations, up from $US17.5 billion in FY24 and delivered underlying EBITDA of $US26 billion at a 53 per cent margin. Net operating cash flow came in at $US18.7 billion, enabling $US5.6 billion in dividends to shareholders at a 55 per cent payout ratio.
The company is also preparing for future growth, with its Jansen potash project in Canada 68 per cent complete and on track for first production in mid-2027, while capital projects in Western Australia are focused on sustaining WAIO output above 300Mt.
“We have world-leading assets and we operate them well – underpinned by the sustained focus and capability building that comes through the BHP Operating System,” Henry said.
“This allows us to deliver industry-leading margins, high returns and funds for our growth – a unique combination that underpins our strength, consistency and resilience through the cycle.”