BHP: The ‘world’s largest copper producer’

BHP chief executive officer Mike Henry has reaffirmed the company’s copper aspirations and financial strength during his speech at the BMO Global Metals, Mining and Critical Minerals Conference.

“We’ve grown copper production by 10 per cent from this time last year – and we expect to deliver 24 per cent growth over the three years to June 2025,” Henry said.

“We achieved underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $12.4 billion, with a healthy margin of 51 per cent.”

BHP’s average margin over the past 15 years is more than 50 per cent, making the company one of the industry leaders.

Henry said BHP is the world’s largest copper producer and has the world’s largest copper resource, totalling 44 billion tonnes at 0.59 per cent copper.

BHP produces copper from its South Australian business, including the Olympic Dam, Prominent Hill and Carrapateena mines. The company is also a prominent producer in Chile through its Escondida and Pampa Norte operations.

The company’s Western Australia Iron Ore (WAIO) business boasts 30 billion tonnes of iron ore, with 95 per cent of that within 50km of existing infrastructure.

“That allows us to use fewer processing hubs than our competitors, which simplifies operations and lowers sustaining capital requirements,” Henry said.

“This has resulted in us being the world’s lowest cost major iron ore producer for a fifth year in a row.

“Our combination of low capital intensity and superior cost performance results in better free cash flow generation for every tonne we produce.”

BHP is increasing its focus on copper in new jurisdictions, including through the new Vicuña joint venture (JV) with Lundin Mining in Argentina. Henry said Vicuña could become one of the top 10 copper producers globally through the Filo del Sol and Josemaria projects.

Henry highlighted BHP’s cash generative capacity, with the company delivering a net operating cash flow of $8 billion in the first half of the 2024–25 financial year.

“On a run-rate basis, we’ve generated more than $15 billion per year in all bar one of the past 15 years,” Henry said.

“The resources industry is of course cyclical, so this stability in our cash flows is a significant differentiator for BHP.

“It highlights the enduring quality of our portfolio, and how our focus on operational excellence supports our ability to consistently deliver strong financial performance.”

With strong financials, expansion in key minerals, and continued focus on sustainability, BHP remains positioned for long-term growth.