Long-Term Contract Negotiations Concluded! BHP Western Australia Iron Ore Production Hit a Record High for the Same Period

Published: Apr 23, 2026 14:43

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BHP released its FY2026 Q3 production and sales report (for the nine months ended March 31, 2026) on April 22, 2026:

BHP FY2026 Q3 Iron Ore Business Summary

1. Overall Production

Total iron ore production: FY2026 year-to-date (YTD) totaled 197 million mt, up 2% YoY; Q3 production was 6.28 million mt, down 10% QoQ

Western Australia Iron Ore (WAIO) production: YTD production was approximately 191 million mt (216 million mt on a 100% basis), up 1% YoY, setting a new record high.

Samarco production: YTD production was 5.9 million mt (11.8 million mt on a 100% basis), up significantly 37% YoY, primarily driven by the ramp-up of the second concentrator and higher feed grades.

Production summary (unit: 1 million mt):

2. Production Performance by Asset

Western Australia Iron Ore (WAIO):

Quarterly performance: Q3 production declined 10% QoQ, mainly due to temporary port closures caused by tropical cyclones Mitchell and Narelle, operational adjustments, and higher frequency of planned maintenance. Mine production volumes increased 7%, with inventory drawdowns supporting record output at the Central Pilbara hub (South Flank and Mining Area C), and South Flank exceeded its annualized nameplate capacity.

Efficiency improvements: Car Dumper 3 (CD3) rebuild, completed in Q1, delivered improved performance, while reduced tie-in activities under the multi-year Rail Technology Program (RTP1) enhanced rail network efficiency.

Samarco:

Growth drivers: Production performance was strong, particularly with improved performance of the second concentrator following ramp-up, along with higher feed grades and recovery rates. Due to strong operational performance, full-year production is expected to reach the upper end of the guidance range.

3. Price Realization and Costs

Price realization: WAIO's average realized price for the first nine months of FY2026 was $84.91/wmt (FOB), up 2% YoY.

Unit costs: WAIO's unit cost guidance for FY2026 remains unchanged at $18.25-19.75/mt.

Price realization summary (unit: $/mt):

4. Other Key Information

Chinese market: Completed iron ore sales contract negotiations with China Mineral Resources Group (CMRG).

Management transition: The Board announced that Brandon Craig will succeed Mike Henry as Chief Executive Officer (CEO) effective July 1, 2026. Brandon previously served as President of BHP Americas.

Medium and long-term targets: BHP reaffirmed WAIO's (100% basis) medium-term production target of over 305 million mt per annum (expected to be achieved from FY2028 Q4), with a unit cost target below $17.50/mt.

FY2026 guidance: Annual iron ore production guidance maintained at 258-269 million mt unchanged.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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