BHP produced a record 146.6 million tonnes of iron ore in the second half of the year

The company maintained its annual forecast but acknowledged price concessions in negotiations with China

Australian mining company BHP Group reported record iron ore production for the second half of 2025 (first half of the 2025/2026 financial year), while also reporting pressure on prices due to negotiations with China on contracts for 2026. This is stated in the company’s operating report.

In the second half of the year, BHP produced 146.6 million tons of iron ore on a 100% basis at its assets in Western Australia, which is 1% more than in the same period a year earlier and is the highest figure for six months. In the fourth quarter alone (second quarter of the first half of the 2025/2026 financial year), output rose to 76.3 million tons (+9% q/q; +4% y/y), significantly exceeding the previous quarter’s figure and analysts’ expectations.

At the same time, the company acknowledged that during negotiations with the state-owned China Mineral Resources Group (CMRG), it was forced to agree to lower prices for certain contracts. BHP noted that it would optimize the distribution of products between markets and sales channels in order to maintain operational flexibility, but this partially affected the average selling price. Iron ore remains the group’s key source of profit.

The company confirmed its annual iron ore production forecast of 284-296 million tons, emphasizing that the strong results of the first half of the 2025/2026 financial year create a comfortable position ahead of the traditionally difficult third quarter due to weather conditions.

Separately, the group announced a revision of the investment estimate for the Jansen potash project in Canada, with the cost of the first phase rising to $8.4 billion due to previously underestimated volumes of work and materials.

As a reminder, BHP Group increased its iron ore production by 1% year-on-year to 263 million tons in the 2024/2025 financial year (ended June 30, 2025). The company expected production to be at the lower end of the range forecast for the fiscal year (255-265 million tons).