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

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.