BHP's Quarterly Copper Output Dropped by 19% Driven by Lower Volumes From the Escondida Mine

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

BHP reports a 19% year-on-year drop in copper production to 400,700 tonnes in the last quarter, driven by a 23% decline at the Escondida Mine. Iron ore production was 4% higher. Meanwhile, the company continues to move forward with its projects worldwide.

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Mining and metals company BHP reported a 19% year-on-year drop in quarterly copper production to 400,700 tonnes between July and September, driven by operations in Chile and Australia.

BHP's Escondida mine in Chile, the world's biggest copper mine, had an output of 252,600 tonnes in the last quarter, a 23% year-on-year decline driven by planned lower feed grades, scheduled maintenance, severe weather conditions in July and August, and a fatal incident on September 23 that temporarily shut down operations.

Despite these operational setbacks, BHP expects fiscal year output from Escondida, from July 2026 to June 2027, to reach between 1 million and 1.1 million tonnes of copper. The company continues work on the Escondida New Concentrator, and Industrial Info Resources is tracking 21 projects at the Escondida mine, including the new concentrator, that represent US$11.13 billion in investments.

BHP Recorded Quarterly Production Declines in Chile and South Australia

BHP's Spence mine in Chile and Copper South Australia also recorded quarterly production declines of 15% and 16% year on year, respectively. At Spence, the decline is due to planned lower feed grade and challenges in managing ore variability, while Copper South Australia's decline was due to an underground conveyor belt failure at Carrapateena. The company replaced the belt and progressively ramped up through September.

Among BHP's copper operations, only Antamina in Peru recorded an increase in copper production rising 18% year-on-year to 40,000 tonnes, thanks to higher feed grades and strong operational performance.

Overall, for the 2027 fiscal year, BHP expects to produce between 1.65 million and 1.8 million tonnes of copper.

BHP's iron ore operations closed the quarter with volumes of 66.5 million tonnes, 4% higher than the same period last year, thanks to solid operations at its Western Australia Iron Ore (WAIO) operations in Australia and Samarco in Brazil.

Iron ore guidance for the 2027 fiscal year has been set between 260 million and 272 million tonnes.

"Global markets remain volatile, with geopolitical tensions, trade uncertainty and elevated energy and freight costs continuing to create headwinds across the industry," said Brandon Craig, BHP's CEO. "At the same time, demand for commodities remains resilient, supported by continued industrialisation and urbanisation in China and India, alongside unprecedented investment in data centres and enabling infrastructure globally, which is reinforcing the long-term outlook for copper."

BHP Has a Pipeline of 170 Projects

BHP is one of the world's largest miners, with a pipeline of 170 projects tracked by IIR totaling investments of almost US$41 billion, including nine grassroots mining projects, representing investments of US$7.3 billion.

The most advanced of these grassroots projects is the Jansen potash mine in Canada, which is expected to have a capacity of 4.35 million tonnes of potash per year in phase I.

The remaining eight grassroots mining projects comprise seven copper projects and one iron ore project, aimed at increasing the company's output.

"We are building the next phase of growth in copper and potash. We continued to strengthen one of the world's largest copper portfolios, from funding the Escondida New Concentrator in Chile to growing our resource base and long-term production potential at Copper South Australia, while also expanding our copper growth pipeline across the Americas. Jansen is rapidly taking shape, with Stage 1 now 87 percent complete and on track for first production in mid-2027, adding a new and important commodity to our portfolio," said Craig.

Key takeaways

• BHP produced 400,700 tonnes of copper between July and September
• Quarterly production at the Escondida mine reached 252,600 tonnes, a 23% year-on-year decline, due to weather and operational setbacks.
• The company continues to move forward with key projects like the Escondida New Concentrator and the Jansen project.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).