- Samarco’s output jumps 37% in 9MFY’26
- FY’26 guidance retained across operations
BHP has reported its operational performance for the quarter ended 31 March (Q3FY’26), with iron ore production showing a slight y-o-y increase, supported by strong mining activity and improved system efficiency across its Western Australia Iron Ore (WAIO) operations.
Iron ore production (100% basis) stood at 69.75 mnt in Q3FY’26, rising 3% y-o-y compared to 67.84 mnt in Q3FY’25. However, output declined 9% q-o-q from 76.33 mnt in Q2FY’26, primarily due to weather-related disruptions, including Tropical Cyclones Mitchell and Narelle, which led to temporary port closures, along with higher planned maintenance across the supply chain.
On a nine-month basis (April-March FY’26), total iron ore production (WAIO 100%) reached 216.3 mnt, up 2% y-o-y against 212.5 mnt in the corresponding period last year. This growth was underpinned by consistent operational performance and record production at WAIO.
Higher output from the Central Pilbara hub, particularly South Flank and Mining Area C, along with inventory drawdowns, supported the overall increase in volumes.
At the logistics end, port operations improved following the completion of the Car Dumper 3 (CD3) rebuild earlier in the year (with a 4.3 mnt impact), while reduced tie-in activity under the multi-year Rail Technology Programme (RTP1) enhanced rail network efficiency and ore inflows.
Samarco’s production rises
Samarco’s performance continued to strengthen, with production at 1.88 mnt in Q3FY’26, up 17% y-o-y (though down 3% q-o-q). On a cumulative basis, Samarco output rose sharply by 37% y-o-y to 5.89 mnt in 9MFY’26, supported by improved performance at the second concentrator, higher feed grades, and better recoveries.
Iron ore sales firm y-o-y
Iron ore sales (100% basis) stood at 67.0 mnt in Q3FY’26, largely stable y-o-y against 66.8 mnt in Q3FY’25, but down 11% q-o-q from 75.4 mnt in Q2FY’26. Shipments tracked production trends during the quarter, with the sequential decline primarily due to cyclone-related disruptions, including port closures, along with timing impacts from maintenance activities across the supply chain.
Cumulative sales rose by 1% y-o-y to 212.9 mnt in 9MFY’26 compared to 210.9 mnt last year.
Other highlights
CMRG has eased procurement restrictions on select BHP ore grades in April, which is expected to support demand and improve sales prospects in the upcoming quarter.
Earlier curbs imposed in September, particularly on grades such as Jimblebar fines, had weighed on offtake from the past two quarters. This was reflected in BHP’s production mix, with output from Jimblebar — part of its Western Australia Iron Ore (WAIO) operations falling sharply to 10.9 mnt in Q3, nearly halving on a sequential basis.
However, stronger output from other WAIO operations, especially across the Central Pilbara hubs, helped offset the decline. As a result, overall WAIO iron ore production (100% basis) remained steady at 69.75 mnt for the quarter.
Production guidance for FY’26 remains unchanged
BHP has retained its FY’26 iron ore production guidance at 258-269 mnt, equivalent to 284-296 mnt on a 100% basis, indicating current run rates in the final quarter.
WAIO guidance remains unchanged at 251-262 mnt, while Samarco’s guidance is steady at 7-7.5 mnt, now expected to be at the top end of the range, reflecting strong year-to-date performance.
Note: BHP follows a July-June financial year, with FY’26 spanning July 2025 to June 2026.
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