Australian producer BHP reported higher iron ore output from its Western Australia Iron Ore (WAIO) operations in January-March, even as weather events led to closures of key export ports.
BHP's WAIO operations produced 60.9mn t in January–March, it reported on 22 April, up by 1pc on the year, while total iron ore production rose by 2pc on the year to 62.8mn t (see table).
The result represents a recovery of volumes from the same time last year when severe weather impacted operations in January and February.
BHP has concluded iron ore sales contract negotiations with China Mineral Resources Group (CMRG), indicating a resolution to recent trade tensions and continued flow of volumes to Chinese steel mills.
WAIO operations were impacted by weather disruptions from tropical cyclones Mitchell and Narelle, which led to temporary port closures, operational adjustments and higher planned maintenance activity, BHP said.
But WAIO achieved record production over the period, supported by higher material mined volumes, up by 7pc, and drawdown of inventory, which boosted output from the Central Pilbara hubs of South Flank and Mining Area C. South Flank also continued to operate above its annualised nameplate capacity.
Port performance strengthened following the completion of the car dumper 3 at Port Hedland in January-March, which increased rail and port efficiency and supported inflows.
Samarco production rose by 19pc on the year to 1.9mn t, due to stronger performance at the mine's second concentrator following a ramp-up alongside higher feed grades and improved recoveries.
BHP has left its iron ore production guidance for its fiscal year to 30 June 2026 unchanged at 251mn–262mn t. The company needs to produce 60.3mn t in its April-June quarter to reach the lower end of this figure. It produced 68.35mn t in April-June 2025.
The iron ore fines 61pc Fe (ICX®) cfr Qingdao price was assessed at $107.85/t on 22 April.
BHP's average realised iron ore price declined by 2pc on the year to $85.35/t on a fob basis.
| BHP iron ore quarterly results | (mn t) | ||||
| Jan - Mar '26 | Jan - Mar '25 | Oct - Dec '25 | q-o-q % ± | y-o-y ± % | |
| Production (equity basis) | |||||
| Western Australia | 60.9 | 60.1 | 67.8 | -10 | 1 |
| Samarco | 1.9 | 1.6 | 1.9 | 0 | 19 |
| Total | 62.8 | 61.7 | 69.7 | -10 | 20 |
| Sales | |||||
| Lumps | 19.9 | 18.8 | 20.6 | -3 | 6 |
| Fines | 38.7 | 40.4 | 46.3 | -16 | -4 |
| Samarco | 1.6 | 1.4 | 2.5 | -36 | 14 |
| Total | 58.6 | 59.2 | 66.9 | -12 | -1 |
| Source- BHP | |||||
