BHP Group Highlights Copper Growth, Jansen Progress and Safety Push at AGM

Key Points

• BHP reported strong fiscal 2026 results, with underlying EBITDA reaching $33 billion, profit rising 30% to $13 billion and total dividends of about A$2.40 per share. Copper generated more than half of earnings for the first time, while major assets including iron ore, Olympic Dam and Escondida delivered strong production.
• The company expects production to grow 3%–4% annually through 2035, including roughly 5% annual copper growth, and said its Jansen potash project remains on track for first production in mid-2027 despite cost increases, delays and a $2.3 billion write-down.
• Safety and sustainability remain key concerns: BHP acknowledged two recent worker fatalities and pledged stronger controls, while maintaining its 2030 emissions-reduction target. Management is testing battery-electric equipment but declined to set a 2040 operational-emissions target until the technology and investment pathway are more developed.

BHP Group NYSE: BHP outlined its fiscal 2026 performance, growth plans and safety priorities at its annual general meeting, where management also addressed shareholder concerns about the Jansen potash project, coal operations, decarbonization and water use.

Chair Ross McEwan said the company had undergone a smooth leadership transition, with Brandon Craig becoming chief executive officer on July 1 following Mike Henry’s retirement. McEwan said the board had confidence in Craig’s leadership following a succession process and pointed to his 27 years of experience across BHP’s Australian and Americas operations.

McEwan also announced the appointment of Mark Vassella, former BlueScope Steel chief executive, to BHP’s board effective June 1.

Safety was the central priority in the opening remarks. McEwan and Craig acknowledged the deaths of two workers in recent months, one at BMA’s Peak Downs mine in Queensland and another at Escondida in Chile. Craig said the fatalities were “simply unacceptable” and that BHP’s only acceptable safety outcome was zero fatalities. He said the company was reviewing incidents, strengthening controls and seeking to ensure contractors receive the same level of safety protection as direct employees.

Financial and Operating Performance

BHP said it approved total fiscal 2026 dividends equivalent to about A$2.40 per share, representing $8.7 billion returned to shareholders and its highest dividend in four years, according to McEwan.

Craig said underlying EBITDA rose to $33 billion and underlying attributable profit increased 30% to $13 billion. He said each major asset met unit-cost guidance despite inflation, higher diesel prices and supply disruptions.

• Western Australia Iron Ore delivered record production and remained the world’s lowest-cost major iron ore producer for the seventh consecutive year, Craig said.
• Olympic Dam recorded its highest production in more than 20 years.
• Escondida achieved record material moved and concentrator throughput.
• Copper accounted for more than half of BHP’s earnings for the first time, with Craig describing BHP as the world’s largest copper producer.

Craig said BHP’s current plans are expected to support compound annual production growth of approximately 3% to 4% through 2035, including about 5% annual copper growth.

Jansen Project and Growth Pipeline

Management said Jansen, BHP’s Canadian potash project, remains on track for first production in the middle of next calendar year. However, shareholders questioned increased costs, schedule delays and a $2.3 billion write-down associated with the project’s second stage.

Craig said the project had been affected by higher-than-expected post-pandemic inflation and lower field productivity than originally forecast. He said BHP had since improved productivity, tightened project controls and strengthened its project-execution capability.

Despite the cost increases, Craig said BHP remained committed to Jansen because of the quality and longevity of the asset. He projected operating costs of about $120 per ton in a potash market currently priced at about $300 per ton, and said the operation could deliver margins of roughly 60% over more than 70 years.

Beyond Jansen, Craig identified copper growth opportunities at Escondida, Copper South Australia and Vicuna. McEwan also referenced BHP’s 50% interest in an Argentine copper project with Lundin Mining and its 45% interest in the Resolution copper joint venture in the United States.

Climate, Coal and Electrification

Shareholders and climate advocates pressed the company on proposed coal-mine approvals, fleet electrification and whether BHP would establish a 2040 operational-emissions target.

McEwan said BHP has a target to reduce operational emissions 30% by 2030 from its 2020 baseline and a net-zero goal for 2050. He said about 80% of power used across BHP’s global mining operations now comes from renewable sources.

Craig said the company would not commit to setting a 2040 target within 12 months because BHP needs a credible pathway supported by mature technology. He said battery-electric haul trucks and related systems were still being tested and would require multibillion-dollar investment to deploy at scale.

Management said BHP is trialing two 220-ton-class battery-electric haul trucks in the Pilbara and plans to expand battery-electric locomotive trials. McEwan said the company continues buying diesel trucks because electric alternatives are not yet fit for BHP’s operating environment.

On Queensland metallurgical coal, Craig said BHP has no current plans for major mine expansions and is not presently committing additional growth capital because of policy conditions in the state. He said permit applications should not be interpreted as expansion plans, as operations must renew approvals in the ordinary course of business.

Water and Community Commitments

In response to a shareholder question on groundwater extraction near mound springs in South Australia, Craig said BHP was working with the South Australian government on the Northern Water Project. The project is intended to provide desalinated water for operations and ultimately eliminate the need to draw terrestrial water from the Great Artesian Basin.

McEwan said BHP increased spending with Indigenous suppliers to more than $1 billion during the year, three times the level of three years earlier. He added that the company’s total economic contribution exceeded $50 billion, including more than $12 billion in taxes, royalties and other government payments.

About BHP Group (NYSE:BHP)

BHP Group Limited is a global resources company headquartered in Melbourne, Australia. The company explores, develops and operates large-scale mineral assets, with core products including copper, iron ore, metallurgical coal and potash. Its commodities are used in steelmaking, construction, manufacturing, agriculture and technologies supporting the energy transition.

BHP's principal operations are located in Australia, Chile, Canada and Brazil. Major assets include Western Australia Iron Ore, the Escondida and Spence copper operations in Chile, Olympic Dam in South Australia and the Jansen potash project in Saskatchewan, Canada.

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