Australia-based miner BHP has announced that its iron ore production increased by 4 percent year on year to 66.5 million mt in the first quarter of its financial year 2026-27, ended September 30, supported by strong operating performance at its Western Australia Iron Ore (WAIO) operations despite significant planned maintenance. However, output declined by 2 percent compared with the preceding quarter, while full-year production guidance remained unchanged at 260-272 million mt.
Commenting on the results, BHP CEO Brandon Craig said the company's bulk commodities businesses had delivered a strong start to the financial year through a quarter of intensive maintenance, highlighting record first-quarter performance at both WAIO's mines and port.
WAIO achieves quarterly records despite maintenance
BHP's attributable production at WAIO rose by 4 percent year on year to 64.3 million mt, while output on a 100 percent basis increased by 2 percent to 71.9 million mt. The company achieved record first-quarter volumes at both its mines and port, reflecting strong performance across its integrated mine, rail and port operations.
Nevertheless, attributable output declined by 3 percent quarter on quarter, partly reflecting the ongoing rebuild of Car Dumper 4 at Port Hedland, which reduced production by approximately 1.4 million mt on a 100 percent basis during the quarter. The rebuild was approximately 40 percent complete and remained on schedule for completion in the first half of the current financial year.
WAIO's production guidance for the financial year 2026-27 remained at 253-264 million mt on an attributable basis, equivalent to 286-298 million mt on a 100 percent basis.
Iron ore sales increase as realized prices weaken
WAIO's attributable iron ore sales increased by 6 percent year on year to 66.3 million mt, comprising 47.8 million mt of fines, up 13 percent, and 18.5 million mt of lump, down 9 percent.
Meanwhile, BHP's average realized iron ore price fell by 9 percent both year on year and quarter on quarter to $76.27/wmt FOB. The company maintained its WAIO unit cost guidance at $20.25-21.75/mt for the current financial year, subject to movements in the diesel benchmark.
Craig noted that geopolitical tensions, trade uncertainty and elevated energy and freight costs continued to weigh on the global mining industry, although commodity demand remained resilient, supported by continued industrialization and urbanization in China and India.
Expansion projects target output above 305 million mt
BHP continued to advance investments aimed at lifting WAIO's annual production to more than 305 million mt on a 100 percent basis by the end of the financial year 2027-28.
The sixth car dumper at Port Hedland remained on schedule for completion in the fourth quarter of that financial year. Once operational, the facility is expected to help offset production losses associated with major car dumper renewals beginning in the financial year 2028-29, while improving ore blending and screening capabilities at the port.
Meanwhile, the Western Ridge Crusher project remained on track to deliver first ore in the first half of the financial year 2026-27.
Samarco output rises on stronger concentrator performance
At Brazil-based Samarco, BHP's attributable iron ore production increased by 4 percent year on year and 10 percent quarter on quarter to approximately 2.2 million mt, supported by strong concentrator performance. Production on a 100 percent basis reached approximately 4.3 million mt.
BHP maintained its attributable production guidance for Samarco at 7.5-8 million mt for the financial year 2026-27.
