New mine boosting BHP’s iron ore strategy

BHP is pushing ahead with its iron ore strategy as the company ramps up operations at its new South Flank mine in Western Australia.

During a recent shareholder session, BHP chief executive officer Mike Henry shed light on South Flank’s progress.

“The ramp up at South Flank is going well,” Henry said. “This was a very big new iron ore mine development as part of our Western Australian iron ore complex.

“Since the decision to invest in it back in 2017, we have ramped the mine up to full production.

“Our average quality of product suite through the development of South Flank has given use to a greater lump fraction … and allowed us to increase our average iron ore content, allowing us to secure higher prices.”

The company has been able to maintain high quality grades while still focusing on maintaining its title of the “lowest cost major iron ore producer globally”.

BHP saw record volumes delivered from its Central Pilbara Hub (South Flank and Mining Area C) during the first half (H1) of the 2024–25 financial year (FY25). South Flank saw a nine per cent increase in productive movement across H1 FY25.

The major plans to increase production to 305 million tonnes per annum (Mtpa) at WAIO over the medium term, with the potential to reach even higher levels.

“We are assessing options to grow our WAIO production up to 330Mtpa (100 per cent basis) if market conditions warrant, including studying optimal mine and infrastructure configurations and potentially increasing ore beneficiation,” Henry said.

“We expect to complete these studies in 2025.”

With demand from key markets such as China continuing to drive prices, BHP’s ability to deliver high-quality ore is paramount.

China is the world’s largest importer of iron ore, with the country increasing its raw materials by five per cent year-on-year in 2024 for a total of 1.2 billion tonnes. Global iron ore exports in 2024 increased by two per cent, in comparison to 2023.