BHP Group, the world’s largest listed miner, reported increased production for the December quarter, with iron ore output inching up and copper production surging 17%. The gains were driven by operational efficiencies and richer ore quality at its key sites.

Iron ore production at the South Flank operations in Western Australia reached 73.1 million metric tonne, slightly up from 72.7 million tonnein the same quarter last year and in line with the Visible Alpha consensus estimate of 72.8 million tonne.

Copper output rose sharply to 510,700 tonne, attributed to improved processing and richer ore quality at the Escondida mine in Chile. The company remains bullish on copper’s long-term demand, projecting a global deficit of 10 million metric tons within a decade. BHP has committed at least $11 billion for further development at Escondida and other Chilean projects.

BHP maintained its iron ore production forecast for Western Australia at 282-294 million tonne and expects output at the higher end of this range. It also anticipates achieving the upper half of its guidance for 2025 at its BMA operations in Central Queensland, the New South Wales Energy Coal division, and the Samarco joint venture in Brazil.

Mike Henry, CEO expressed confidence in continuing strong performance into the second half of FY25, citing tight cost controls and expectations of higher production across multiple assets.

Shares of BHP rose 1% to A$40.67 in early trade, outperforming the broader mining index, which gained 0.5%.

The company expects its net debt to reach around $15 billion by the end of FY25, nearing the top end of its target range. This increase is largely due to provisions related to the 2015 Samarco dam collapse in Brazil.

(ET)