| Thu 17 Apr 2025, 7:05 | | BHP GROUP LIMITED - Quarterly Activities Report |
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Quarterly Activities Report
BHP Group Limited
17 April 2025
Operational review for the nine months ended 31 March 2025
Record iron ore and copper production demonstrating resilience of business
"BHP's performance in FY25 to date demonstrates the resilience of our business,
with our copper and iron ore operations achieving record nine-month production
amid challenging operating and market conditions. Group copper production rose
10%, underpinned by a 20% increase in output at Escondida and strong
performances at Spence and Copper SA. In our WA iron ore operations, we continue
to demonstrate supply chain excellence from pit to port, and delivered record
tonnes from the Central Pilbara hub. At BMA in Queensland, in the highest
rainfall wet season in more than a decade, steelmaking coal volumes rose by 5%
following a strong performance across the open cut mines.
BHP recently achieved 40% female representation across our global employee base,
a 23% point increase since 2016. The efforts that have underpinned this have made
BHP a safer, more productive, and better performing business. We have a
distinctive competitive advantage in responding to labour and skills shortages
across our sector.
Despite the limited direct impact of tariffs on BHP, the implication of slower
economic growth and a fragmented trading environment could be more significant.
China's ability to shift toward a consumption-led economy and for trade flows to
adapt to the new environment will be key to sustaining the global outlook.
In the face of global volatility and policy uncertainty, BHP is poised to
benefit from a flight to quality with tier one assets, industry-leading margins
and high-return organic growth opportunities that will underpin value and
returns through the cycle."
Mike Henry
BHP Chief Executive Officer
Summary
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Operational excellence Guidance
Record iron ore and copper production Production on track; Escondida MT updated
BHP delivered record nine-month group copper production of 1.5 We are on track to deliver production in the upper half of the
million tonnes, driven by a 20% increase at Escondida and strong FY25 guidance ranges at Escondida, Pampa Norte and NSWEC, with
underlying performances across all other operated copper assets. Samarco expected at the upper end. FY25 production guidance
ranges at all assets remain unchanged, with BMA now no longer
We also delivered record nine-month iron ore production, with guided to the upper half due to wet weather. We also remain on track
WAIO demonstrating its resilience to offset the impact of to deliver FY25 unit cost guidance across all assets, except BMA
Tropical Cyclone Zelia and Tropical Storm Sean, and as Samarco where we expect unit costs to be higher due to weather and
continues to ramp up. geotechnical challenges at Broadmeadow.
We have optimised the growth program schedule at Escondida,
including extending the expected life of the Los Colorados
concentrator beyond FY29. This and other operational measures
add ~400 kt of incremental production and extend medium term
guidance of 900 - 1,000 ktpa to FY31.
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Growth Social value
Growing in copper and potash Progress on decarbonisation
We are executing on our growth program with Jansen Stages 1 and We are on track to achieve our target of reducing operational
2 now 66% and 8% complete (respectively), the formation of the greenhouse gas emissions by at least 30% by FY30/i/. The pace of
Vicuna joint venture, and the submission of the DIA permit development of some decarbonisation technology has slowed,
relating to the Laguna Seca concentrator expansion at Escondida. particularly relating to the displacement of diesel used for
materials movement. We continue to work with our Original
Equipment Manufacturer partners to advance zero emission
technology and we are progressing certain site trials.
Quarter performance YTD performance FY25 production guidance
--------------------------- ----------------- --------------------------------------
YTD Mar v YTD Mar
Production Q3 FY25 v Q2 FY25 v Q3 FY24 FY25 FY24 Previous Current
--------------------------------------------- ------- --------- --------- ------- --------- ------------- -------------
Copper (kt).................................. 513.2 0% 10% 1,500.2 10% 1,845 - 2,045 1,845 - 2,045
Escondida (kt)............................. 333.6 (2%) 16% 977.6 20% 1,180 - 1,300 1,180 - 1,300 Upper half
Pampa Norte (kt)/ii/....................... 67.9 3% 10% 194.2 (3%) 240 - 270/ii/ 240 - 270/ii/ Upper half
Copper South Australia (kt)................ 78.9 11% (0%) 223.5 (4%) 300 - 325 300 - 325 Unchanged
Antamina (kt).............................. 30.9 1% (9%) 97.7 (7%) 115 - 135 115 - 135 Unchanged
Carajas (kt)............................... 1.9 (37%) (39%) 7.2 17% -- -- --
Iron ore (Mt)................................ 61.8 (7%) 0% 192.6 1% 255 - 265.5 255 - 265.5
WAIO (Mt).................................. 60.1 (7%) (0%) 188.3 1% 250 - 260 250 - 260 Unchanged
WAIO (100% basis) (Mt)..................... 67.8 (7%) (0%) 212.5 1% 282 - 294 282 - 294 Unchanged
Samarco (Mt)............................... 1.6 11% 39% 4.4 18% 5 - 5.5 5 - 5.5 Upper end
Steelmaking coal - BMA (Mt)/iii/............. 3.9 (12%) (35%) 12.9 (26%) 16.5 - 19 16.5 - 19 Original
BMA (100% basis) (Mt)/iii/................. 7.8 (12%) (35%) 25.7 (26%) 33 - 38 33 - 38 Original
Energy coal - NSWEC (Mt)..................... 3.6 (3%) (13%) 11.0 (6%) 13 - 15 13 - 15 Upper half
Nickel - Western Australia Nickel (kt)/iv/... 2.3 (71%) (88%) 29.9 (49%) -- -- --
Note: Updates with respect to FY25 production guidance since the
HY25 Results Announcement are shown in italics. Refer page 5 for
footnotes.
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BHP | Operational review for the nine months ended 31 March 2025
Segment and asset performance | FY25 YTD v FY24 YTD
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[GRAPHIC] Further information in Appendix 1
Detailed production and sales information for all operations in Appendix 2
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Copper
Production Total copper production increased 10% to a record 1,500 kt. Copper production guidance for FY25
remains unchanged at between 1,845 and 2,045 kt.
1,500 kt Up 10%
Escondida 978 kt Up 20% (100% basis)
YTD Mar FY24 1,360 kt
Production increased primarily due to strong material mined, higher concentrator feed grade of
FY25e 1,845 - 2,045 kt 1.05%, increasing from 0.85%, and higher concentrator throughput. This was partially offset by
planned lower cathode production, as the integration of the Full SaL leaching project continued.
The project remains on track for first production later in FY25.
Average realised price
Production guidance for FY25 remains unchanged at between 1,180 and 1,300 kt and is now expected
US$4.19/lb Up 13% to be in the upper half of this range, as strong operational performance across the year offset
the challenges of Union N(degree)1 strike action, sea swells at Puerto Coloso and the national
YTD Mar FY24 US$3.72/lb Chilean power outage in February. Concentrator feed grade is now expected to be above 0.95%
(previously above 0.90%) for FY25.
Following the site visit in November 2024, we have continued to optimise our growth program
schedule to reduce production impacts. It is expected the operation of the Los Colorados
concentrator will be extended beyond FY29, without any impact to the remainder of the growth
program. We anticipate this extension and other operational measures will increase production
across the period from 2027 to 2031, to between 900 - 1,000 ktpa, extending current medium term
guidance. The actions have the potential to add an incremental ~400 kt of production across the
period.
Pampa Norte 194 kt Down 3%
Pampa Norte consists of Spence and Cerro Colorado. Spence production increased 3% due to
improved stacked material and grades, notwithstanding the impact of the national Chilean
power outage in February. Concentrator feed grade was broadly in line with the prior period.
Production guidance for FY25 for Spence remains unchanged at between 240 and 270 kt, with
production now expected to be in the upper half of the range.
Cerro Colorado remains in temporary care and maintenance having contributed 11 kt of copper
production in HY24.
Copper South Australia 224 kt Down 4%
Strong underlying performance following the weather-related power outage in Q2. The Olympic
Dam smelter and refinery demonstrated operating stability, delivering strong copper cathode
production and record refined gold and silver production in the quarter.
Carrapateena is achieving higher productivity from the sub-level cave enabled by Crusher 2,
delivering record mine and concentrator performance. Production was lower at Prominent Hill
due to the impacts of the minor pit geotechnical instability and ventilation constraints in
Q1, which was partially offset by inventory drawdowns.
Production guidance for FY25 remains unchanged at between 300 and 325 kt.
Other copper
At Antamina, copper production decreased 7% to 98 kt reflecting planned lower concentrator
throughput and a slight decline in feed grade. Zinc production was 22% lower at 68 kt, as a
result of planned lower feed grade and lower throughput.
For FY25, at Antamina, copper production guidance of between 115 and 135 kt and zinc production
guidance of between 90 and 110 kt remain unchanged.
Carajas produced 7.2 kt of copper and 5.5 troy koz of gold.
2
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BHP | Operational review for the nine months ended 31 March 2025
Iron ore
Production Iron ore production increased 1% to a record 193 Mt. Production guidance for FY25 remains
unchanged at between 255 and 265.5 Mt.
193 Mt Up 1%
WAIO 188 Mt Up 1% | 213 Mt (100% basis)
YTD Mar FY24 190 Mt
Production increased as a result of continued strong supply chain performance, with record
FY25e 255 - 265.5 Mt volumes delivered from the Central Pilbara hub (South Flank and Mining Area C) following the
completion of the ramp up of South Flank in FY24 and a 13% increase in productive movement.
Average realised price The Port Debottlenecking Project 1 (PDP1), which was delivered in CY24, has continued to unlock
improved car dumper and ship loader performance with record nine-month shipments of iron ore.
US$82.93/wmt Down 21%
This strong performance was partially offset by the impact of Tropical Cyclone Zelia and Tropical
YTD Mar FY24 US$104.53/wmt Storm Sean, and the planned increase in tie-in activity of the multi-year Rail Technology
Programme (RTP1).
Production guidance for FY25 remains unchanged at between 250 and 260 Mt (282 and 294 Mt on a
100% basis).
Samarco 4.4 Mt Up 18% | 8.8 Mt (100% basis)
Production continues to increase following the restart of the second concentrator in December.
Ramp up is progressing well and production capacity is expected to increase to ~16 Mtpa of
pellets (100% basis) once fully ramped up by the end of FY25 (ahead of schedule).
Production guidance for FY25 remains unchanged at between 5 and 5.5 Mt, with production expected
to be at the upper end of the range.
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Coal
Steelmaking coal
Production BMA 12.9 Mt Down 26% | 25.7 Mt (100% basis)
12.9 Mt Down 26% Production increased 5% (excluding the contribution of Blackwater and Daunia in FY24). Strong
performance across the open cut mines, underpinned by improved truck productivity and a draw
YTD Mar FY24 17.4 Mt down of inventory, helped mitigate the impact of significant wet weatherv in the December and
March quarters.
FY25e 16.5 - 19 Mt
At Broadmeadow, we are operating at slower mining rates to safely manage the geotechnical
characteristics of the current longwall panel. We expect this will continue into Q1 FY26.
Average realised price
Production guidance for FY25 remains unchanged at between 16.5 and 19 Mt (33 and 38 Mt on a
US$200.12/t Down 26% 100% basis). Following the impact of significant wet weather and geotechnical challenges at
Broadmeadow, production is now no longer guided to the upper half of the range and unit costs
YTD Mar FY24 US$272.09/t for FY25 are now expected to be between US$128/t and US$133/t/vi/.
Our work to improve raw coal inventory levels in prior periods has assisted in stabilising
operating performance across the asset, as we have drawn down on inventory this quarter to help
mitigate the impact of wet weather and geotechnical challenges. This will extend the inventory
rebuild into CY27.
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3
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BHP | Operational review for the nine months ended 31 March 2025
Energy coal
Production NSWEC 11.0 Mt Down 6%
11.0 Mt Down 6% Production decreased as a result of reduced truck availability, increased wet weather and a
higher proportion of washed coal, partially offset by a draw down of inventory.
YTD Mar FY24 11.6 Mt
Production guidance for FY25 remains unchanged at between 13 and 15 Mt, with production
FY25e 13 - 15 Mt expected to be in the upper half of the range.
On 16 April 2025, we received approval from the NSW Government to extend mining to 30 June 2030.
Average realised price
US$115.99/t Down 4%
YTD Mar FY24 US$120.97/t
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Group & Unallocated
Nickel
Production Western Australia Nickel 30 kt Down 49%
30 kt Down 49% Western Australia Nickel (WAN) transitioned into temporary suspension in HY25. No production
guidance has been provided for FY25.
YTD Mar FY24 59 kt
BHP intends to review the decision to temporarily suspend WAN by February 2027.
Quarterly performance | Q3 FY25 v Q2 FY25
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Copper Iron ore
513 kt Up -% Higher production at Copper SA with strong 62 Mt Down 7% Lower production at WAIO as a result of the
performance following the weather-related impact of Tropical Cyclone Zelia and Tropical
Q2 FY25 511 kt power outage in Q2 was offset by lower Q2 FY25 66 Mt Storm Sean.
production at Escondida due to a national
Chilean power outage and high sea swells
which prevented concentrate loading onto
vessels resulting in a temporary suspension
to upstream concentrator operations.
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Steelmaking coal Energy coal
3.9 Mt Down 12% Lower production due to significant wet 3.6 Mt Down 3% Lower production due to reduced wash plant
weather, partially offset by inventory availability and the impact of wet weather.
Q2 FY25 4.4 Mt draw down. Q2 FY25 3.7 Mt
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Nickel
2.3 kt Down 71% Inventory was drawn down as operations
transitioned into temporary suspension in
Q2 FY25 8.0 kt HY25.
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4
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BHP | Operational review for the nine months ended 31 March 2025
Footnotes
i Our operational GHG emissions are the Scopes 1 and 2 emissions from our
operated assets. Our FY30 reduction target is from our FY20 baseline,
adjusted for acquisitions, divestments and greenhouse gas emission
calculation methodology changes.The latest BHP GHG Emissions Calculation
Methodology is available at bhp.com/climate.
ii YTD March FY24 includes 11 kt from Cerro Colorado, which entered temporary
care and maintenance in December 2023. Excluding these volumes, YTD March
FY25 production increased 3%. Production guidance for FY25 is for Spence
only. Refer to copper and the production and sales report for further
information.
iii YTD March FY24 production includes 5 Mt (10 Mt on a 100% basis) from the
Blackwater and Daunia mines, which were divested on 2 April 2024. Excluding
these volumes, YTD March FY25 production increased 5%. Following the impact
of significant wet weather and geotechnical challenges, production is now
no longer guided to the upper half of the guidance range. Refer to
steelmaking coal and the production and sales report for further
information.
iv Western Australia Nickel ramped down and entered temporary suspension in
December 2024. Refer to nickel and the production and sales report for
further information.
v 649mm of rainfall recorded at Moranbah in the nine months ended 31 March
2025, 32% higher than the nine months ended 31 March 2024 (493mm).
vi FY25 unit cost guidance is based on an exchange rate of AUD/USD 0.66.
5
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BHP | Operational review for the nine months ended 31 March 2025
Appendix 1
Average realised prices/i/
Quarter performance YTD performance
--------------------------- ----------------------------
Q3 FY25 v Q2 FY25 v Q3 FY24 YTD Mar FY25 v YTD Mar FY24
------- --------- --------- ------------- --------------
Copper (US$/lb)/ii/ ................................... 4.56 22% 18% 4.19 13%
Iron ore (US$/wmt, FOB) ............................... 86.85 6% (18%) 82.93 (21%)
Steelmaking coal (US$/t)/iii/ ......................... 184.98 (7%) (34%) 200.12 (26%)
Energy coal (US$/t)/iv/ ............................... 97.81 (21%) (16%) 115.99 (4%)
i Based on provisional, unaudited estimates. Prices exclude sales from equity
accounted investments, third party product and internal sales, and
represent the weighted average of various sales terms (for example: FOB,
CIF and CFR), unless otherwise noted. Includes the impact of provisional
pricing and finalisation adjustments.
ii Sales from Carrapateena and Prominent Hill acquired through the purchase of
OZL are included since Q4 FY24 period.
iii From FY25, steelmaking coal refers to hard coking coal which is generally
those steelmaking coals with a Coke Strength after Reaction (CSR) of 35 and
above. Comparative periods include impacts from weak coking coal, which
refers generally to those steelmaking coals with a CSR below 35, which were
sold by Blackwater and Daunia mines, divested on 2 April 2024.
iv Export sales only. Includes thermal coal sales from steelmaking coal mines.
Current year unit cost guidance
FY25 guidance/i/
Unit cost Current
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Escondida (US$/lb).................................... 1.30 - 1.60 Unchanged
Spence (US$/lb)....................................... 2.00 - 2.30 Unchanged
Copper SA (US$/lb)/ii/................................ 1.30 - 1.80 Upper half
WAIO (US$/t).......................................... 18.00 - 19.50 Unchanged
BMA (US$/t)........................................... 128 - 133 Increased
i FY25 unit cost guidance is based on exchange rates of AUD/USD 0.66 and
USD/CLP 842.
ii Calculated using the following assumptions for by-products: gold
US$2,000/oz, and uranium US$80/lb.
Medium term guidance/i/
Production Unit cost
guidance guidance/ii/
---------------- ------------------
Escondida/iii/......................................... 900 - 1,000 ktpa US$1.50 - 1.80/lb
Spence................................................. ~250 ktpa US$2.05 - 2.35/lb
WAIO (100% basis)...................................... >305 Mtpa
