BHP has reported a 19% drop in copper production for the first quarter of financial year 2027 (Q1 FY27), attributing the decrease to lower planned feed grades and operational disruptions at several of its assets, including maintenance and severe weather impacts in Chile.
Despite the decline, the company said its full year copper production guidance remains unchanged at 1.65 million tonnes (mt) to 1.8mt.
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Output from the Escondida mine in Chile, BHP’s largest copper asset, fell by 23% on the same period last year to 252,600t.
The company cited a fatal incident in September at its Escondida operation in Chile and another involving a team member at the Peak Downs mine, both of which led to temporary suspensions of mining activities.
The average copper price achieved rose by 53% to $7.01/lb compared to $4.59/lb last year.
BHP CEO Brandon Craig said: “Global markets remain volatile, with geopolitical tensions, trade uncertainty and elevated energy and freight costs continuing to create headwinds across the industry.
“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.”
The decline at Escondida reflected a planned reduction in concentrator feed grade, scheduled maintenance, a temporary halt to mining following the fatal incident, and severe weather in July and August that affected logistics and truck fleet utilisation.
At Pampa Norte (Spence), copper production was down by 15% to 47,400t, a drop attributed to lower concentrate production and ongoing ore variability.
In South Australia, copper output declined by 16% to 60,700t, mainly due to an underground conveyor belt failure at Carrapateena, which was resolved within seven weeks, and scheduled inventory build-up at Olympic Dam.
Meanwhile, iron ore production from Western Australia Iron Ore operations rose by 4% to 64.3mt despite significant planned maintenance work.
Steel-making coal production at BMA increased by 1% to 4.9mt, while energy coal output at New South Wales Energy Coal rose by 26% to 4.4mt.
During the quarter, BHP signed a memorandum of understanding with KGHM Polska Miedź, the majority owner of Sierra Gorda, to explore collaboration opportunities. It also completed a transaction increasing its interest in Faraday, an emerging US copper developer, to 32%.
