Australian miner, BHP, confirmed its role as a key copper player in FY25. The company hit record production, maintained strong margins, and made strategic investments, even amid economic uncertainty.
CEO Mike Henry highlighted safety as a top priority and credited BHP’s resilience and diverse portfolio for its success. Let’s study how copper drove the mining giant’s success.
BHP’s Copper Production Surpasses 2 Million Tonnes
BHP produced over 2 million tonnes of copper for the first time, a 28% increase over three years. This growth offset lower prices in iron ore and coal, highlighting copper’s importance.
Despite lower iron ore and coal prices, copper helped BHP maintain strong financial outcomes. Revenue hit US$51.3 billion, with underlying EBITDA at US$26 billion and a 53% margin. Profits stood at US$10.2 billion.
Notably, free cash flow totaled US$5.3 billion after US$9.8 billion in capital and exploration, including US$4.5 billion for copper projects.
- The Copper Division’s EBITDA soared 43.9% to US$12 billion, showcasing copper’s vital role in the company’s earnings.
Strategic Copper Investments Strengthen Global Supply
BHP plans to invest US$11 billion annually in copper for FY26 and FY27, stabilizing at around US$10 billion per year from FY28 to FY30.
- A key focus is the Escondida Expansion in Chile, with an additional US$2 billion aimed at boosting output by 22%, targeting nearly 1 million tonnes annually.
- The project combines advanced technology and sustainable practices while supporting renewable energy and infrastructure.
Other important projects include Copper South Australia, which could double production, and the Vicuña Project in Argentina, offering a long-term copper opportunity.
The Jansen project in Canada, focused on potash, complements BHP’s broader growth strategy alongside copper.
Together, these initiatives strengthen the company’s ability to meet rising global copper demand.
Sustainable Copper Mining
BHP aims to cut its operational greenhouse gas emissions by at least 30% from FY20 levels by FY30, and reach net zero by 2050.
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Emissions are already 36% below FY20 levels (adjusted).
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Shipping emissions intensity is 44% lower than the 2008 baseline.
The NeoSmelt Electric Smelting Furnace pilot has reached the feasibility stage. The miner is advancing in steel decarbonization, low-carbon shipping with ammonia, wind-assist, and biofuels, and explores diesel alternatives like electric mining equipment.
It plans to invest at least US$4 billion in decarbonization in the 2030s and has already chartered ammonia dual-fuel carriers and partnered with Aurizon in South Australia to cut truck movements.
BHP also launched a 158,000-hectare conservation project in Copper South Australia, and boosted Indigenous procurement by 40%. These actions ensure BHP’s copper is responsibly sourced and supports global decarbonization goals.
BHP Copper: Powering EVs, Renewables, and the Global Energy Transition
BHP’s record copper and iron ore output comes at a critical time for renewable energy growth. The company uses advanced technology to extend the life and efficiency of its copper operations.
Techniques like ore sorting, precision mining, and water management allow more copper to be extracted from lower-grade ores. These innovations boost output, reduce environmental impact, and reinforce BHP’s role as a reliable global supplier.
- A typical EV uses about 83 kilograms of copper, 4 or 5X more than a conventional vehicle, while renewable energy projects consume roughly 5X more copper than fossil fuel plants.
- The International Energy Agency estimates 5.5 million tonnes of new copper supply will be needed annually by 2030.
Strategic agreements channel BHP’s copper to wind turbines, EV batteries, and other green technologies, supporting the low-carbon transition.
While project delays, cost inflation, and regulatory changes pose risks, its diversified portfolio, technology, and smart investments help ensure an efficient, sustainable copper supply to meet global demand.
BHP’s record copper production and innovation are vital for global needs. Its projects in Chile, Australia, and Argentina, plus new technologies, strengthen its role as a trusted supplier for renewable energy, EVs, and infrastructure. As the world moves to a low-carbon future, BHP’s copper operations support growth.
