17th Apr 2025 07:59
(Alliance News) - BHP Group Ltd on Thursday stuck to its annual production guidance as it signalled that it faces "limited" direct hit from fallout from US tariffs.
But the Melbourne, Australia-based diversified miner warned that slower economic growth and trade fragmentation as a result of tariffs could be "more significant".
In its operational review, the company said copper and iron ore production reached records for the first nine months of its financial year.
Copper production rose 10% to a record 1.5 million tonnes for nine months that ended March 31. Output was up 0.4% to 513,200 tonnes for the third quarter from 511,000 tonnes in the second quarter, and grew by 10% compared to the third quarter as year earlier.
For nine months, iron ore production was up 1% to a record 192.6 million tonnes. Third-quarter iron ore output was down 7% to 61.8 million tonnes, but was flat compared to the third quarter a year before.
Steelmaking coal output for nine months declined 26% to 12.9 million tonnes. Steelmaking coal production fell 12% to 3.9 million tonnes in the third quarter versus 4.4 million tonnes in the second quarter. Output slumped 35% compared to the third quarter a year earlier.
Nine-month energy coal production dropped 6% to 11.0 million tonnes. Third-quarter energy coal output was down 3% to 3.6 million tonnes from 3.7 million tonnes in the second quarter, and decreased 13% compared to the third quarter previously.
BHP Chief Executive Officer Mike Henry said the group's performance for the first nine months demonstrated the resilience of its business, with copper and iron ore operations achieving record production amid global volatility and policy uncertainty.
"Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant," Henry said.
China's ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook, he predicted.
BHP maintained its 2025 financial year copper production guidance at between 1.84 million tonnes and 2.04 million tonnes, compared to 1.86 million tonnes for the 2024 financial year.
Annual iron ore production guidance is also kept at between 255.0 million tonnes and 265.5 million tonnes a year before.
By Artwell Dlamini, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
BHP Group