BHP record copper output reaches 2mn t as Escondida leads

BHP

BHP record copper output hit 2mn tonnes in FY2024-25, up 8.1pc year on year. The result landed at the top of guidance, underscoring operational resilience. As a result, BHP maintained FY2025-26 guidance at 1.8mn-2mn t. BHP record copper output reflects stronger grades at Escondida and disciplined throughput. Meanwhile, the miner flagged grade normalization ahead.

Escondida drives gains; grades normalize next year

Escondida delivered 1.3mn t, its best in 17 years, lifting group performance. Higher ore grades averaged 1.02pc versus 0.88pc last year. However, grades slipped in April-June and are guided to 0.85pc in FY2025-26. Therefore, BHP plans to offset with higher concentrator throughput and stable maintenance. The company kept Escondida’s 1.2mn-1.3mn t guidance unchanged.

Pampa Norte produced 268,000t, at the top of its range, led by Spence cathodes. Spence cathode output rose 12pc to 117,000t on higher stacked feed grades. However, weaker concentrator feed grades will trim 2025-26 guidance to 230,000-250,000t. The Cerro Colorado site remains in care and maintenance, limiting upside.

Regional performance and outlook for FY2025-26

Copper South Australia produced 315,900t, clipped by an October power outage. Even so, second-half output rebounded 18pc to 171,200t on improved recoveries. The operation set a quarterly record of 92,100t in April-June. Guidance stands at 310,000-340,000t for FY2025-26.

Antamina contributed 119,000t, down 17pc on planned lower grades and throughput. BHP guided Antamina to 120,000-140,000t next year as grades stabilize. The Carajás complex added 9,400t, providing optionality across Brazil. Altogether, BHP record copper output strengthens global supply during tight markets.

The Metalnomist Commentary

BHP’s mix of grade management and throughput discipline stood out this year. Watch Escondida’s grade drift and Spence’s concentrator feed as key swing factors. If guidance holds, sustained capex and steady recoveries should anchor margins despite volatility.