BHP touts company’s resilience with record copper and iron output in the face of global trade risks

BHP Group (ASX: BHP) says that, while it expects tariffs to have a limited direct effect on its business, slower economic growth and a fragmented trading environment could have a more significant impact.

“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,” chief executive officer Mike Henry told shareholders in the company’s operational review for the nine months to the end of March 2025.

“In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with tier one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle.”

Resilient business

Mr Henry said the company’s record iron ore and copper production demonstrated its robustness in turbulent times.

“BHP’s performance in FY25 to date demonstrates the resilience of our business, with our copper and iron ore operations achieving record nine-month production amid challenging operating and market conditions.”

“Group copper production rose 10%, underpinned by a 20% increase in output at Escondida and strong performances at Spence and Copper SA,” he added.

“In our WA iron ore operations, we continue to demonstrate supply chain excellence from pit to port and delivered record tonnes from the Central Pilbara hub.”

Growing copper portfolio

BHP has identified copper as a key critical metal for the move to clean energy.

The US government recently awarded fast-track status to the Resolution copper project in Arizona operated by BHP – which owns 45% of the project – and fellow mining giant Rio Tinto (ASX: RIO).

Resolution, one of the largest copper deposits in the US, would be capable of supplying 25% of the nation’s annual domestic demand for the next four decades.

Earlier this month, the White House named Resolution as part of its official list of critical mineral “transparency projects.”

Strategic critical minerals

Resolution general manager Vicky Peacey said the project would also be a tremendous source of other strategic and critical minerals including indium, tellurium, bismuth and rhenium.

“There is growing recognition of the urgent need to develop domestic sources of copper and other critical materials to support the nation’s energy security and industrial base,” Ms Peacey said.

“The Resolution copper mine is vital to securing America’s energy future and infrastructure needs with a domestic supply of copper and other critical minerals.”

“As part of the transparency initiative, we look forward to continuing to work closely with federal agencies to provide greater public insight into the project’s progress and ensure the highest standards of environmental stewardship and cultural sensitivity.”