BHP Operational Review for the Half Year Ended 31 December 2024: Record Production and Strategic Advancements
BHP, one of the world’s leading mining companies, has achieved strong operational results in the first half of fiscal year 2024, delivering a solid performance in its core commodities. Under the leadership of CEO Mike Henry, BHP reported substantial increases in production across its flagship assets, particularly copper, iron ore, and steelmaking coal. The company’s diversified asset base and focused growth in future-facing commodities have positioned BHP for continued success in the second half of 2024 and beyond.
Record Copper Production: 10% Increase and Milestones Achieved
Copper has been a standout performer for BHP in the first half of fiscal year 2024, with copper production rising by 10% year-over-year. The company’s flagship Escondida mine in Chile reached a 10-year production record, contributing significantly to the overall increase in copper output. During the review period, Escondida produced 1.1 million metric tons of copper, a remarkable achievement for the world’s largest copper mine. The increase in production helped offset the impact of a weather-related power outage at BHP’s Copper SA operations in South America.
In total, BHP produced 1.6 million metric tons of copper during the first half of FY 2024, reinforcing its position as one of the world’s largest and most reliable copper producers. This increase is particularly notable given the global demand for copper, driven by the rise in electric vehicles, renewable energy, and new technological advancements such as artificial intelligence.
Iron Ore: Record Shipments from Western Australia
BHP’s Western Australia Iron Ore operations continued to perform strongly, achieving record shipments for the first half of FY 2024. The company successfully shipped 126 million metric tons of iron ore from its WAIO mines, supported by significant improvements in supply chain logistics. The completion of major debottlenecking projects at the port allowed for smoother operations, ensuring timely shipments and reducing bottlenecks.
The improved performance of WAIO reflects BHP’s commitment to maximizing operational efficiency across its global assets. The strong iron ore shipments helped offset market volatility and positioned BHP to benefit from ongoing global demand for iron ore, driven by infrastructure development and steel production.
Steelmaking Coal: 14% Increase in Production
BHP’s BMA operations in Queensland, Australia, reported a 14% increase in steelmaking coal production during the first half of FY 2024. The company produced 16 million metric tons of steelmaking coal, a key input for the global steel industry. Steelmaking coal remains a critical commodity for BHP, with strong demand from markets in Asia and the rest of the world. The company’s ability to increase production and maintain efficiency has positioned it as a leading supplier of this essential resource.
Steelmaking coal’s performance is particularly crucial as steel demand continues to rise in the construction, automotive, and energy sectors. BHP’s consistent coal output ensures that it remains a key player in the supply of high-quality coal to the global market.
Progress on Future-Facing Commodities: Copper and Potash Projects
BHP is advancing its portfolio of future-facing commodities, particularly copper and potash, which are expected to be central to the company’s long-term growth. The formation of Vicuña Corp. with Lundin Mining in January 2025 was a significant step forward in BHP’s copper growth strategy. The joint venture aims to develop the Filo del Sol and Josemaria projects in Argentina, which are some of the most promising copper discoveries in recent years. These projects will help secure BHP’s future copper supply in response to increasing global demand for the metal.
In Canada, BHP’s Jansen Stage 1 potash project is now 63% complete, with the first production expected in late 2026. Potash is essential for global food production, and the company’s investment in potash development will strengthen its presence in the agricultural sector, meeting growing global demand for fertilizers.
Brazil: Samarco Dam Settlement and Environmental Commitment
In Brazil, BHP, in collaboration with Vale, signed a comprehensive settlement agreement with the Brazilian government and public authorities to address the aftermath of the Samarco Fundão dam failure. The agreement focuses on compensating the affected communities and restoring the environment, demonstrating BHP’s commitment to social responsibility and sustainability. This settlement will support the recovery of communities impacted by the tragedy and strengthen BHP’s long-term relationships in the region.
WA Nickel Operations: Temporary Suspension and Workforce Management
BHP’s WA Nickel operations underwent a period of temporary suspension in the first half of FY 2024, as part of the company’s strategy to adjust production in response to market conditions. BHP managed the transition smoothly, ensuring that employees were safely relocated to other areas of the business during this phase. This reflects the company’s focus on employee well-being and operational flexibility during periods of change.
Production Outlook for the Second Half of FY 2024
BHP is well-positioned to continue its strong momentum into the second half of FY 2024. The company expects to maintain high production levels, with several assets now expected to deliver output in the upper half of their respective ranges. BHP’s diverse asset portfolio, coupled with its strategic focus on copper, iron ore, steelmaking coal, and potash, ensures that the company can capitalize on the growth of key global industries such as technology, infrastructure, and renewable energy.
Additionally, BHP is committed to maintaining tight cost control and operational efficiency to safeguard margins and deliver consistent returns to shareholders. The company’s ability to navigate market fluctuations and its emphasis on sustainability and community engagement will play a pivotal role in driving long-term growth.
