BHP’s copper profits outstrip iron ore for first time
Annual earnings surge to $33bn, driven by booming demand for data centres and energy networks
BHP, the world’s largest mining company, reported booming growth for the year to June as copper overtook iron ore as its primary profit driver for the first time on an annual basis.
The Australian group said that profits generated from its copper mines rose by 48 per cent to $18bn. That accounted for 54 per cent of its total underlying earnings before interest, taxation, depreciation and amortisation of $33bn, up 27 per cent over the previous 12-month period.
BHP raised its dividend for the year to $1.72 — a 56 per cent increase and the highest for four years. Net profit increased 9 per cent to $9.8bn while revenue was 15 per cent higher at $58.8bn.
“Copper is the engine that is driving BHP’s growth,” said chief executive Brandon Craig, who was presenting his first annual results after being promoted earlier this year to take over from Mike Henry.
BHP shares opened almost 4 per cent higher in Sydney on Tuesday, bringing the rise this year to about 40 per cent and valuing the company at $232bn.
Glyn Lawcock, an analyst with Barrenjoey, said that copper earnings growth had exceeded expectations and offset a slightly weaker iron ore and coal performance.
Demand for copper has been driven by increased investment in data centres and energy networks. BHP expects that annual copper demand will increase to 50mn tonnes by 2050 from the current 34mn tonnes.
BHP, which mines copper in South America and South Australia, has also benefited from the byproducts mined alongside the red metal, with revenue generated from gold, silver and uranium up 45 per cent to $4.5bn for the year.
The miner described copper as its “biggest growth opportunity” and said that the cash generated by its existing operations meant it could fund growth projects. “The copper growth is entirely self-funding over the next five years,” finance chief Vandita Pant said on a media call.
BHP failed to take over Anglo American under Henry and was this week linked to interest in Canadian uranium miner NexGen Energy.
The company already supplies 5 per cent of the world’s uranium but Craig said it remained a byproduct. Although he did not comment on takeover speculation, the chief executive said BHP was “pretty happy” with its four core commodities of copper, iron ore, potash and metallurgical coal.
Moreover, Craig said that the return on organic projects remained superior to mergers and acquisitions. The cost per tonne of BHP’s existing projects ranged from $16,000 to $30,000 compared with about $100,000 to acquire a pure-play copper producer, he said. “That’s almost talking a 5-to-1 factor building it compared to buying it.”
The company said its outlook remained positive despite cost pressures across the mining sector following the Iran war and industrial disputes at some of its Australian sites. Craig said that he did not expect the industrial action to have a negative effect on its performance.
“Demand for what we mine is building,” Craig said, referring to copper and iron ore needed for Chinese steel production — the lifeblood of BHP’s growth for two decades. China is expected to produce about 1bn tonnes of steel a year as the world’s second-largest economy continues to invest in its power grid.
BHP’s outlook pointed to weaker Chinese economic growth in recent months compared with a “strong start” to 2026, but expects that growth will remain broadly consistent with the official 4.5 to 5 per cent target range for the year due to increased fiscal support from the government.
The company said that property and domestic demand remained soft, but had been offset by stronger export activity.
BHP also expected growth in India to moderate due to high energy costs and weather-related disruptions.