BHP Group NYSE: BHP reported what Chief Executive Officer Brandon Craig described as a strong financial year, supported by record production in Western Australia iron ore, strong performance at the Escondida copper mine in Chile, resilient iron ore prices and high copper prices.
Chief Financial Officer Vandita Pant said copper accounted for more than 50% of the company’s EBITDA for the first time. BHP produced 2 million tons of copper across its copper assets during the year, she said, while ending the period with net debt below $9 billion.
The company paid $8.7 billion in dividends for fiscal 2026, which Pant said was its highest annual dividend in four years. She also cited more than $4 billion in capital unlocks through Antamina streaming deals.
Craig, who said he had been in the CEO role for about 50 days, outlined priorities centered on safety, productivity and growth in copper, potash and iron ore.
Fatality at Peak Downs
Before discussing the annual results, Craig addressed a fatal incident at BMA’s Peak Downs mine in Queensland. He said he had entered the role with the ambition of completing his tenure without a fatality at BHP and called the event tragic.
“I have absolute conviction that we can be a business that is fatal-free,” Craig said. He said he visited Peak Downs to meet with the team and understand what occurred, adding that the company needs to learn from the incident despite progress it has made in eliminating fatalities.
Craig later said safety would remain the company’s first priority, describing BHP’s objective of becoming a fatality-free business as a real conviction that will require further improvements and investment.
Copper Growth Plans
BHP is pursuing several copper growth projects, including an expansion of Escondida, which Craig described as the world’s largest copper mine. The mine is undergoing grade decline, and BHP plans to reinvest in the operation through a new concentrator intended to lift production.
In Argentina, BHP and Lundin Mining are developing the Vicuña project through a joint venture. Craig said the multistage project could reach a potential final investment decision as early as the end of the calendar year. Once fully ramped up, he said, it could rank among the top five copper producers and top five gold producers.
The company is also advancing a smelter and refinery expansion in Copper South Australia. Craig said a full-capacity expansion could bring the operation to 1 million tons of copper-equivalent production. Longer-dated options include the Resolution project in Arizona.
Craig said BHP could grow from 1.4 million tons of attributable copper production currently to 2 million tons and beyond. Pant said the company believes its copper growth portfolio in Chile, South Australia, Argentina and the United States can be funded from copper’s own cash flows.
- Escondida expansion in Chile, including a proposed new concentrator.
- Vicuña copper and gold project in Argentina with Lundin Mining.
- Copper South Australia smelter and refinery expansion.
- Longer-term optionality at Resolution in Arizona.
Portfolio, Capital and Market Conditions
Craig said BHP has high conviction in copper, potash, iron ore and metallurgical coal. He said global primary copper production of about 25 million tons currently will need to rise to more than 35 million tons, describing the required supply addition as challenging.
For potash, he said the market is expected to grow from 75 million tons of production to more than 100 million tons by 2050. BHP’s Jansen One and Jansen Two projects are expected to add 8.5 million tons over the next decade, according to Craig.
The company expects iron ore production to progressively increase to 305 million tons and sees potential to improve output at BMA by bringing latent capacity online, Craig said. Pant added that potash is expected to begin production next year.
On China, BHP’s largest market, Craig said the company’s customer relationships remain strong despite media attention around iron ore pricing negotiations. He said BHP and Chinese steel mill customers have a mutually beneficial relationship and also work together on decarbonization initiatives.
Costs, Labor and Decarbonization
Pant said elevated fuel prices affected BHP’s financial results by about $200 million for the year. She said BHP has not experienced disruptions to supplies of diesel, sulfuric acid, or inputs used in ammonia and explosives, citing its relationships with multiple global suppliers.
Craig addressed increased union activity in Western Australia, saying BHP has operated under a direct engagement model in the Pilbara for more than 20 years. He said the company respects unions’ right to bargain and workers’ right to participate, and will engage in good faith while continuing to invest in employee pay, conditions and workplace relationships.
On decarbonization, Pant said BHP’s greenhouse-gas emissions have fallen by almost one-third from its 2020 baseline. Nearly 80% of its assets are now powered by renewable energy, she said, and the company remains on track to meet its 2030 target of reducing emissions 30% from the 2020 base year.
Craig said BHP will seek further structural productivity gains through its operating system and greater use of technology. He said faster execution of potash and copper projects, alongside safety improvements and productivity gains, would be central to expanding the company’s production base and shareholder value.
About BHP Group (NYSE:BHP)
BHP Group is an Anglo-Australian natural resources company engaged principally in the exploration, development, production and marketing of commodities. Its core businesses include the extraction and processing of iron ore, copper, metallurgical and thermal coal, nickel and other minerals. BHP operates large-scale mining and processing assets and supplies raw materials used across steelmaking, energy and industrial supply chains.
The company has a global operating footprint with significant assets and projects in Australia and the Americas, and commercial activities that serve customers worldwide.
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