BHP Group Ltd (ASX: BHP) shares are edging higher on Tuesday.
On Tuesday morning, the mining giant's shares are up slightly to $49.06.
This follows the release of its first half production update.
How did BHP perform during the first half?
For the six months ended 31 December, BHP reported copper production of 984.1kt. This was flat on a prior corresponding period. Escondida delivered steady production, Copper South Australia recorded a 2% increase in production, and Antamina posted an 8% increase in production. This offset production declines at Pampa Norte (Spence) and Carajas.
BHP's iron ore production increased 2% during the first half to 133.8Mt. This reflects modest production growth at WAIO and a large jump from the Samarco operation.
Elsewhere, steelmaking coal production lifted 2% and energy coal production increased 10%.
Guidance updates
In light of its solid first half performance, management has upgraded parts of its FY 2026 guidance.
Its production guidance has increased for group copper, Escondida, and Antamina. Whereas NSWEC and Samarco are also now guiding to the upper half of their ranges, while BMA is now guiding to the lower half due to ongoing geotechnical challenges at Broadmeadow.
FY 2026 unit cost guidance remains unchanged for all assets, with Escondida now guiding to the bottom end and BMA guiding to the upper half of their respective ranges.
Management notes that the increase in its copper production guidance enables BHP to further capitalise on record copper prices. The strong copper price is being driven by healthy demand and supply disruptions at a number of competitors.
Commenting on the half, BHP's CEO, Mike Henry, said:
BHP delivered another half of very strong performance with operational records at our copper and iron ore assets. This was achieved safely and in a positive commodity price environment, with copper prices up 32% and iron ore prices 4% higher year on year. We have increased FY26 group copper production guidance off the back of stronger delivery across our assets. Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the FY26 production guidance range. Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output.
In iron ore, WAIO achieved record first half production and shipments, positioning us well ahead of the typically wet third quarter. Volumes from Samarco rose as a result of strong operational performance at the second concentrator following its restart at the end of H1 FY25.
Henry also provided an update on its potash plans, revealing that the Jansen potash project in Canada should be up and running next year. He adds:
The Jansen potash project in Canada is on track to begin production in mid-2027. Jansen will be a long life, low cost and scalable asset that will add a new, future facing commodity to BHP's portfolio, which we expect will generate value for shareholders over many decades. We have separately provided an updated cost estimate for Jansen Stage 1 today.
Outlook
BHP's leader spoke positively about the miner's outlook. Henry is expecting robust demand from China and growing demand from India. He concludes:
China's commodity demand remains resilient, supported by targeted policy measures and solid exports. Momentum moderated in H2 CY25, notably in construction, manufacturing and infrastructure investments. India is emerging as a key engine of demand, with strong domestic activity sustaining steel and rising copper needs. Forecast global growth in 2026 is around 3%, creating a positive backdrop for commodity demand. BHP enters the second half of FY26 with strong operating momentum. We're investing for the decade ahead, with a significant copper growth pipeline and a pathway to ~2 Mt of attributable copper production in the 2030s.
