Copper Overtakes Iron Ore at BHP, and Most of It Comes From Chile

BHP's FY2026 annual results, released on August 18, 2026, reveal that copper has become the company's top earner for the first time, overtaking iron ore. This shift is primarily due to copper's strong position in global markets, driven by demand for electric wiring, renewable energy systems, and electric vehicles. The majority of this copper comes from BHP's operations in Chile, specifically the world's largest copper mine, Escondida, located in the Antofagasta region.

Escondida produced 1.261 million tonnes of copper in FY2026, accounting for a substantial portion of BHP's total copper output of 1.953 million tonnes. BHP's total revenue increased by 15% to US$58.8 billion in FY2026, with underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) climbing 27% to US$32.9 billion.

The company's return on capital employed stood at 26%, showcasing efficient use of assets. Net debt fell to US$8.7 billion, indicating strong cash generation. Chile, home to Escondida, plays a critical role in BHP's copper story. The country, which heavily depends on copper revenues for public services and infrastructure, benefits from BHP's copper profits, which increase tax payments to the Chilean government.

Global demand for copper, particularly for renewable energy technologies, is reshaping the mining industry. Despite a 3% dip in BHP's overall copper output, the company's copper business posted an impressive 70% margin on EBITDA, underscoring efficient operations and favorable market conditions. This shift to copper reflects the growing importance of the metal in the global energy transition.

Investors are advised to closely monitor Chilean mining assets, as Chile holds about a third of the world's copper reserves, making the country a key global supplier.