BHP’s production of copper in 2025’s first three months climbed 10%, boosted by a ramp of of its Escondida operations in Chile. — Bloomberg
MELBOURNE: BHP Group Ltd is warning US President Donald Trump’s tariff spree could trigger a global economic slowdown and challenge trade flows, as the world’s biggest miner posted a solid quarterly production performance for key commodities including copper and iron ore.
“Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant,” chief executive officer Mike Henry said in a statement yesterday.
“China’s ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook.”
The global commodities market has been one of the sectors most exposed to the fallout from Trump’s burgeoning trade war.
That could complicate Henry’s agenda to grow BHP’s holdings of what he calls “future facing commodities” – copper and potash.
The drive has been backed by revenue derived from the miner’s longstanding iron ore business, which still accounts for more than half of its earnings.
BHP’s production of copper in 2025’s first three months climbed 10%, boosted by a ramp of of its Escondida operations in Chile, it said.
Meanwhile, output from its Australian iron ore projects was steady at 68.1 million tonnes, and it kept its full-year guidance for the steel-making material unchanged.
Prices of copper – seen as a global economic bellwether – tumbled from late March as Trump launched his tariff spree, before recovering some losses.
Iron ore has been comparatively stable, despite dropping below US$100 a tonne during April on concerns of oversupply as Beijing battles with a property crisis and slowing economy.
Henry backed his company to benefit from the turmoil, saying investors will be attracted to its large-scale, low-cost projects.
BHP is one of the lowest cost iron ore miners in the world at around US$18 a tonne, while selling at an average of about US$83 to the market during the quarter, according to the filings.
“In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with Tier-one assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle,” Henry said.
That doesn’t mean BHP is immune to the challenges facing the mining sector. In February, it slashed its dividend by 31%.
BHP was also impacted by seasonal weather interruptions across its iron ore and coal operations during the period, which is its third quarter.
BHP has a controlling 57.5% interest in the massive Escondida project, which has been hit by power outages. — Bloomberg
