Diversified commodities major BHP CEO Mike Henry has expressed concern about increasing protectionism, warning that while tariffs have little direct impact on the miner, their broader implications could undermine global growth and reshape trade flows.

“Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant,” Henry said on Thursday.

“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," he said, delivering the miner's March quarter results.

The warning comes amid escalating geopolitical and economic tensions, driven by major players like the US and China imposing tariffs, trade barriers and protectionist measures that could potentially slow global growth, disrupting resource demand.

Henry stressed that BHP was well positioned to weather volatility, underscoring the miner’s strong asset base and organic growth pipeline.

“In the face of global volatility and policy uncertainty, BHP is poised to benefit from a flight to quality with Tier 1 assets, industry-leading margins and high-return organic growth opportunities that will underpin value and returns through the cycle,” he said.

PRODUCTION
BHP reported strong operational results for the nine months ended March 2025, led by record production from its copper and iron-ore divisions despite challenging weather and market conditions.

“BHP’s performance in FY25 to date demonstrates the resilience of our business, with our copper and iron-ore operations achieving record nine-month production amid challenging operating and market conditions,” Henry said.

Group copper production rose 10% year-on-year to 1.5-million tonnes, with Chile’s Escondida mine leading the way. The operation contributed 977 600 t in the nine-month period – 20% more than a year earlier – and is now expected to finish the year at the upper end of its 1.18-million- to 1.30-million-tonne guidance range.

Production gains were also noted at Spence and Copper South Australia. Looking ahead, BHP has extended the operation of the Los Colorados concentrator beyond the 2029 financial year, with the potential to add an incremental 400 000 t of copper between 2027 and 2031, increasing medium-term output to between 900 000 and one-million tonnes a year.

In iron-ore, BHP produced a record 212.5-million tonnes over the nine-month period at its Western Australian Iron Ore (WAIO) operations – flat year-on-year – despite disruptions caused by Tropical Cyclone Zelia and Tropical Storm Sean. The miner maintained its full-year output guidance of 282-million to 294-million tonnes.

Quarter-on-quarter, WAIO production in the March quarter dipped 7% to 67.8-million tonnes, but remained stable year-on-year.

Steelmaking coal, however, faced more challenges. Output at the BHP Mitsubishi Alliance (BMA) fell 35% year-on-year in the March quarter to 3.9-million tonnes, owing in part to one of the wettest seasons in more than a decade and geotechnical issues at Broadmeadow. 

Year-to-date production is down 26% at 12.9-million tonnes, and BHP now expects the 2025 financial year's unit costs to rise to between $128/t and $133/t. The full-year guidance remains at 16.5-million to 19-million tonnes, though no longer toward the upper end.