Mining giant BHP is focusing on copper as its key growth commodity but is continuing to invest in its WA iron ore business, with a $US900 million project announced today.
Mining giant BHP is focusing on copper as its key growth commodity but is continuing to invest in its WA iron ore business, with a $US900 million project announced today.
The group’s full-year underlying attributable profit fell to $US10.2 billion ($15.6 billion) in FY25, down from $US13.7 billion in FY24.
The profit was in line with expectations and reflected lower coal and iron ore prices.
However the group surprised the market with a higher than anticipated final dividend of US$0.60 per share ($0.92 per share).
BHP Chief Executive Mike Henry described the financial results as “robust” saying they reflected the resilience of BHP’s business and strategy at a time of global uncertainty.
“FY25 was another strong year for BHP, marked by record production, continued sector-leading margins and disciplined capital allocation.”
Despite the global uncertainty, Mr Henry talked up the suite of growth projects, particularly in copper.
“We are optimising our growth program at Escondida in Chile, Copper South Australia has the potential to double production through phased expansions and the Vicuña project in Argentina is advancing towards a multi-decade copper opportunity,” he said.
In addition, the Jansen project in Canada is estimated to deliver first potash production by mid-2027.
In each of the next two years, BHP expects to spend $US11 billion in capital and exploration, reducing to $US10 billion per year between FY28 and FY30.
That spend is up from $US9.8 billion in FY25 and $US9.3 billion in FY24.
In iron ore, the group plans to spend $US900 million on a sixth car dumper and associated infrastructure at Port Hedland.
That is on top of annual sustaining capital expenditure in the Pilbara of about $US6.50 per tonne, which equates to about $US2 billion.
The group said sustaining projects are anticipated to include the Ministers North mining pit, utilising the existing Yandi infrastructure, subject to potential FID in FY26.
BHP recently completed studies into lifting Pilbara production to 330mtpa but has opted to not proceed at this time.
Instead it has maintained its medium-term production guidance at 305mtpa, up from a record 290mt in FY25.
The group said the sixth car dumper would allow it to maintain production at about 305mt while it proceeds with renewals of its existing car dumpers at the port beginning in FY29.
BHP announced it would relax its debt settings.
The miner previously said it would keep debt between $US5 billion and $US15 billion, but that has changed to a range between $US10 billion and $US20 billion.
As at 30 June 2025, net debt increased by US$3.8 billion from 30 June 2024 to US$12.9 billion.
Mr Henry said the global economic outlook was mixed, “yet demand for commodities remains strong, particularly in China and India”.
“Chinese copper demand outperformed in FY25, while iron ore demand was resilient, driven by strong infrastructure investment and manufacturing activity in China.
“Steelmaking coal prices have softened due to oversupply, though policy shifts in China and new blast furnace capacity in Asia are expected to support the market.
“Potash markets are expected to continue to benefit from a growing and wealthier population and the need for more sustainable agriculture.
“We remain confident in the long-term fundamentals of steelmaking materials, copper and fertilisers, which are critical to global growth, urbanisation and the energy transition.
“Backed by a diversified portfolio of large, long-life assets, disciplined low-cost operations and a strong balance sheet, BHP is well-positioned to deliver enduring value through the cycle.”
