BHP Group Ltd (BHP)

BHP is a global diversified natural resources company that explores for, acquires, develops, mines, processes and markets metals and minerals. Its business model spans exploration and acquisition, development and mining, processing and logistics, centralised sales, marketing and procurement, and closure and rehabilitation across the asset lifecycle. BHP describes itself as the world's largest copper producer. It reports an EBITDA margin that has averaged above 50 per cent for over 25 years, net debt of US$8.7 billion at 30 June 2026, and more than US$115 billion returned to shareholders over the past decade.

Its operations are centred on copper, iron ore and steelmaking coal, with potash in development. Copper assets include Escondida in Chile (the world's biggest copper mine, producing 1,261 kt in FY2026), Pampa Norte in Chile (Spence and Cerro Colorado), and Copper South Australia (Olympic Dam, Carrapateena, Prominent Hill and the Oak Dam project), which also produces gold, silver and uranium. Non-operated copper joint ventures are Antamina in Peru, Resolution Copper in Arizona (45 per cent, operated by Rio Tinto) and Vicuña, a Lundin Mining joint venture on the Argentina-Chile border. Western Australia Iron Ore (WAIO) is an integrated system of four processing hubs, five open-cut mines, more than 1,000 km of rail and two port facilities at Port Hedland, with lump and fines products. BHP owns 85 per cent of the four main joint ventures and 65 per cent of POSMAC. Samarco, a non-operated iron ore pellet joint venture in Brazil, is in a phased restart. BHP Mitsubishi Alliance (BMA) runs five steelmaking coal mines in Queensland's Bowen Basin and its own coal-loading terminal at Hay Point. The Jansen potash project in Canada is 84 per cent complete, with first production expected in mid-CY2027. BHP also runs BHP Ventures, a venture capital unit, BHP Invent, a technology development group, and the Xplor exploration accelerator program. Exploration is focused on copper, with total metals exploration and resource assessment spending of US$408 million in FY2026.

Growth plans focus on copper, with attributable production targeted at about 2 Mtpa (about 2.5 Mtpa copper equivalent) by FY2035. BHP expects global copper demand to exceed 50 million tonnes by CY2050, driven by economic growth, the energy transition and AI data centre demand. WAIO plans to reach more than 305 Mtpa on a 100 per cent basis by Q4 FY2028 and is the lowest-cost major iron ore producer. Potash serves customer markets and demand drivers different from BHP's other commodities. BHP sells through centralised marketing organisations and blends coal to customer specifications. Its operations and projects are located in Chile, Australia, Peru, the United States, Argentina, Brazil and Canada.

Competitors in copper include Anglo American, Antofagasta, Codelco, Freeport, Glencore, Rio Tinto, Southern Copper and Teck. In iron ore, competitors include Fortescue, Rio Tinto and Vale. Supply arrangements mentioned include a design and supply contract with China Nerin Engineering for the Olympic Dam smelter and refinery expansion. BHP also has a silver streaming agreement with Wheaton Precious Metals on its Antamina share, which delivered US$4.3 billion upfront.