BHP reports record iron ore production in the first half of the year

BHP Group (BHP) reported a drop in prices for certain types of iron ore during negotiations with China Mineral Resources Group (CMRG) for 2026 deliveries, Reuters reports. At the same time, iron ore production in the first half of the year reached a record volume.

The company is negotiating the terms of an annual contract with CMRG and plans to expand sales to other markets. BHP noted that optimizing distribution channels and product placement affects the actual price.

Restrictions by CMRG on purchases of iron ore by Chinese steel mills since September have reduced availability on the spot market, which, according to analysts, will support the prices of key indices and offset discounts for BHP. The company’s shares fell 2% on Tuesday amid weakness in the mining sector.

Separately, BHP reported increased costs for the Jansen potash project in Canada. Total investment in the first phase of the project rose to $8.4 billion, up from the previously forecasted $7–7.4 billion. The cost increase is due to additional construction hours and materials not accounted for in previous estimates. Initial investment in Phase 1 of the Jansen project was $5.7 billion.