BHP released its Quarterly Activities Report outlining strong performance, particularly increased copper production.
BHP Group Limited (ASX: BHP)
BHP Group Limited (ASX: BHP) reported a strong operational performance for the half-year period ending 31 December 2024. Total copper production increased by 10%, driven by a 22% increase in output at the Escondida mine, which reached a 10-year production record. This was mainly due to higher concentrator feed grades and improved recoveries. Other assets, including Western Australia Iron Ore (WAIO) and BMA coal operations, also showed solid production growth. WAIO achieved record half-year shipments, benefiting from supply chain improvements, while BMA saw a 14% increase in coal production. Despite challenges such as a weather-related power outage at Copper South Australia, the company demonstrated resilience across its assets and maintained a positive outlook for the second half of the fiscal year.
BHP's growth strategy is focused on future-facing commodities, particularly copper. In January 2025, the company successfully formed a joint venture with Lundin Mining called Vicuña Corp., to develop the Filo del Sol and Josemaria copper projects in Argentina and Chile. This venture represents one of the most significant global copper discoveries in decades. BHP also highlighted progress at its Canadian Jansen potash project, which is 63% complete, with production expected to start in late 2026. Furthermore, the company remains committed to the Samarco project in Brazil, having finalized a settlement agreement with the Brazilian government related to the Samarco dam failure, underlining its dedication to environmental and community responsibility.
Regarding operational performance, BHP’s copper production reached 987 kt, with Escondida contributing 644 kt, reflecting a 22% year-on-year increase. However, production at Pampa Norte and Copper South Australia showed slight declines. Copper South Australia's output was affected by a two-week weather-related power outage, but the ramp-up post-outage was successful. Additionally, the company saw a decrease in production at Antamina and Carajás, although these declines were minimal. BHP has revised its guidance for Copper South Australia down to between 300 and 325 kt due to the impact of the outage but maintains unchanged guidance for other copper assets.
In coal production, BHP’s BMA operations saw a 14% increase in production, driven by improved truck productivity and better strip ratios, despite challenges at Broadmeadow mine. The company remains on track to meet its FY25 guidance for coal production. Similarly, NSWEC's energy coal production remained stable, and BHP expects to deliver results in the upper half of its guidance range. The company’s commitment to managing raw coal inventory and restoring value chain stability is a key focus for the second half of the fiscal year. Additionally, BHP’s Samarco operations in Brazil have resumed production, with the pelletising plant and concentrator ramping up ahead of schedule, contributing to improved production capacity.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.