BHP is set to increase its iron ore production by 1 million tons in 2025 thanks to AI

Mining company BHP Group is set to increase its iron ore production by nearly 1 million tons in 2025 thanks to the implementation of AI-based solutions. This was announced by the company’s Chief Digital Officer, Mikko Teponen, during an industry conference in Perth.

For a long time, the key challenge for companies in Western Australia has been the entry of oversized rocks and foreign objects into crushing systems. This led to equipment damage and significant downtime—over three years, the company lost approximately 1,000 hours of crusher operation.

The solution was a computer vision system that uses cameras and machine learning algorithms to detect anomalies in real time. It is integrated directly into the production control system and allows for the rapid removal of hazardous objects before they cause stoppages or accidents.

According to Tepponen, the implementation of the technology resulted in a 20% reduction in crusher downtime and a 60% reduction in related failures. In monetary terms, this generated approximately $50 million in additional value for the company annually. After the system was launched in 2025, incidents of shutdowns caused by foreign objects virtually disappeared.

At the same time, BHP emphasizes that the decisive factor for success was not only the technology but also its implementation. The solution was developed in collaboration with production teams, integrated into existing processes, and immediately scaled across multiple sites.

The company emphasizes that the main challenge for the entire mining industry lies not in creating new pilot projects, but in the ability to scale effective solutions. According to BHP, this is precisely what will determine the further development of artificial intelligence use in the industry.

As a reminder, BHP Group recently confirmed the completion of negotiations on iron ore supplies with China Mineral Resources Group (CMRG), thereby resolving a months-long dispute between the parties.

Previously, Beijing had gradually tightened restrictions on BHP shipments amid the contractual dispute. On March 12, 2026, CMRG expanded the ban to include Newman fines. A week earlier, traders were ordered to purchase fewer new shipments of Newman fines, lump ore, and Mac fines, although the directive allowed the purchase of those grades of ore already stored in ports. Last September, the purchase of Jimblebar ore was banned, and in November, Jinbao products were banned.