BHP Copper Earnings Surpass Iron Ore for First Time

The BHP Group reported a nine percent increase in annual net profit to $9.8 billion for the financial year ending June 30, 2026. For the first time in the company's history, earnings from copper mines in South Australia and Latin America surpassed those from Western Australia iron ore operations. Copper generated $18.2 billion in underlying earnings, compared to $14.5 billion from iron ore, contributing more than half of the company's underlying EBITDA.

Chief Executive Officer Brandon Craig attributed this shift to surging copper prices, which exceeded $14,000 per metric ton, and global demand driven by artificial intelligence data centers and the renewable energy transition. Revenue rose 15 percent to $58.8 billion, supported by record iron ore shipments and strong coal results, though the company recorded a $2.3 billion impairment on its Jansen potash project in Canada.

BHP plans to allocate more than half of its growth spending in the new financial year to copper projects in Chile, Argentina, and South Australia, targeting a production increase of 40 to 50 percent by 2035. The company also reported that the first stage of the Jansen potash project is 84 percent complete, with production expected by mid-2027.

Following the results, BHP declared a total annual dividend of $1.72 per share, the highest payout in four years. The company also reduced its net debt to $8.69 billion.