Australia: BHP’s iron ore output rises y-o-y in Q1FY’27 on strong operational performance

• WAIO production increases y-o-y despite planned maintenance
• Samarco output rises on improved concentrator performance

BHP reported higher iron ore production y-o-y in Q1FY’27, supported by strong operational performance across its Western Australia Iron Ore (WAIO) mines, rail, and port operations. Record output at both the mine and port helped sustain production growth despite significant planned maintenance. Improved concentrator performance also supported higher output at Samarco.

WAIO production rises y-o-y

Western Australia Iron Ore (WAIO) iron ore production (100% basis) stood at 66.45 million tonnes (mnt) in Q1FY’27, up from 64.08 mnt in Q1FY’26. On BHP’s attributable basis (85%), production was up marginally by 2% to 71.91 mnt in Q1FY’27, compared with 70.25 mnt in the previous year. The growth was supported by strong operational performance across its Western Australia Iron Ore (WAIO) mines, rail and port operations, with record output achieved at both the mine and port despite significant planned maintenance.

Among WAIO operations, Area C recorded the strongest performance, with production dipping 1% y-o-y to 29.15 mnt in Q1FY’27 against 29.42 mnt in the same period last year. Output declined at Newman (-18%) and Yandi (-24%), while that at Jimblebar rose by 38%, reflecting mine sequencing and operational factors.

Samarco’s production rises

Samarco produced 2.15 mnt in Q1FY’27, up 4% y-o-y from 2.06 mnt in Q1FY’26, driven by strong concentrator performance. Sales decreased 5% y-o-y to 1.94 mnt against 2.04 mnt in Q1FY’26.

Iron ore sales rise 6% y-o-y

WAIO iron ore sales (100% basis) totalled 73.95 mnt in Q1FY’27, rising 6% compared with 70.59 mnt in Q1FY’26.

Lump sales fell by 9% y-o-y to 18.51 mnt, while fines sales rose 13% to 47.80 mnt. The stronger fines volumes more than offset the decline in lump sales, supporting overall sales growth and indicating a shift in the product mix towards fines.

Production guidance for FY’26 remains unchanged

BHP has guided FY’27 iron ore production at 260-272 mnt, equivalent to 286-298 mnt on a 100% basis.

WAIO guidance has been set at 253-264 mnt, while Samarco is expected to produce 7.5-8 mnt, reflecting continued operational improvement. The WAIO outlook includes the planned renewal of Car Dumper 4 (CD4) during H1FY’27.

Note: BHP follows a July-June financial year, with FY’26 spanning July 2025 to June 2026.