BHP posts record iron ore output in FY25, raises FY26 guidance

Though representing an on-year increase of just 1%, BHP's iron ore output last fiscal reached the upper half of the company's target of 282-294 million wet tonnes, the report showed. Significantly, the miner's iron ore production in the Pilbara during the past April-June quarter jumped by 14% on quarter to 77.5 million wet tonnes, also higher by 0.9% on year.

BHP's iron ore production in FY25 appeared particularly robust, as mine operations in Western Australia had been severely affected by Tropical Cyclone Zelia and Tropical Storm Sean in January-March this year, as reported.

BHP cited "smooth supply chain with record productive movement, improved rail cycle times, enhanced car dumper and ship loader performance" for its record full-year production and shipments, it said in the report.

Notably, the South Flank mine, described by BHP as "Australia's largest new iron ore mine in more than 50 years", exceeded nameplate capacity of 80 million tonnes/year (on a 100% basis) in its first full year of operation, contributing to record Ore for Rail volumes from the Central Pilbara hub, the report highlighted.  

For the current FY26, the company's iron ore production guidance in Western Australia is set higher at 284-296 million wet tonnes (on a 100% basis), according to the report.

As for BHP's Brazilian operation – Samarco Mineração S.A., its 50-50 joint venture with Vale – iron ore production surged by 24% on year to 6.4 million wet tonnes for BHP's share during FY25.

The Samarco output, boosted by the ramp up of the second concentrator ahead of schedule, exceeded the annual target of 5-5.5 million wet tonnes, the reported noted. BHP expects Samarco to produce 7-7.5 million wet tonnes of iron ore (BHP share) in FY26.

With regards to sales, BHP sold a total of 287.6 million wet tonnes of iron ore (100% basis) during FY25, largely stable from the previous financial year. However, the average realized price for iron ore slumped by 19% on year to $82.13/wmt FOB for full-year FY25, according to the report.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com