Booming copper prices and record iron ore volumes drove BHP to a $13.7 billion profit last financial year, with the miner to pay out its biggest dividend since 2022.
The big Australian on Tuesday revealed profit climbed 9 per cent in FY26, while revenue was up 15 per cent to US$58.8bn ($82.7bn).
Those figures were driven by soaring prices of – and demand for – copper, which this year became BHP’s biggest earner.
“Copper is the engine that is driving BHP’s growth,” BHP chief executive Brandon Craig said.
“We have a well-defined project pipeline across Chile, Australia and Argentina that can potentially lift copper production by around 40 per cent by FY35.”
The red metal’s price has risen 35 per cent in the past year on the back of demand from data centres and electrification of everything.
As a result, BHP reckons the growth of its copper division will be self-funding over the next few years.
While no longer the biggest driver of BHP’s profits, the WA iron ore division remained a consistent performer for the miner, churning out 257 million tonnes of ore.
The production cost of those volumes rose 6 per cent to US$19.66-per-tonne, primarily due to fuel constraints because of the Middle East conflict.
While China remains comfortably the largest importer of iron ore, BHP noted growing demand for the product from India, Europe and emerging Asian economies.
“In the long run, the seaborne iron ore trade is likely to undergo steady diversification as demand grows in emerging economies,” the miner said in its report.
“India, historically a major iron ore exporter, saw imports grow to 12 Mt in CY25 and this has continued into CY26 with imports rising further.
“This trend reinforces the view that India is undergoing a structural shift towards net imports, as domestic iron ore supply lagging behind steel capacity growth – with some market expectations of imports above 80 Mt by 2030.”
BHP shareholders will receive a $1.39 final dividend in September, bringing full-year dividends to $2.42 per share at a payout ratio of 66 per cent.
The miner has been tested on its decarbonisation credentials in recent months, owing to delays to its green energy uptake in the Pilbara, and to the rollout of third-party energy projects.
Mr Craig said BHP remained focused on signing power purchase deals with third parties, rather than building its own generation capacity.
“That is largely what we have done across the world (and) that will continue to be our preferred pathway,” he said.
BHP reported emissions were down 33 per cent since 2020, mostly due to renewable energy supply to mines outside of Australia.
Indigenous procurement rose 18 per cent to $1.41bn for FY26.
- The journalist is a BHP shareholder
