How BHP’s US$0.9bn Supports Iron Ore Production Demand

To support its Western Australian Iron Ore (WAIO) operations, BHP is directly investing US$0.9bn in the Ministers North Project. This initiative highlights the strong global demand for iron ore, a sector where the company continues to lead.

According to Fortune Business Insights, global demand for iron ore remains robust with an estimated value of more than US$300bn. Within this high-demand market, BHP, a leading global producer, delivered a total production of 264.7 Mt for fiscal 2026.

This output, which reflects a 1% year-on-year increase, successfully fell within the company’s annual production guidance of 258 to 269 Mt. 

Iron ore is widely utilised across construction, transportation, energy infrastructure and household appliances and is typically processed into pig iron for steel production.

The resource is found in four primary deposit types including massive hematite, magnetite, titanomagnetite and pisolitic ironstone.

Ministers North Project capabilities 

The new Ministers North Project is designed to help achieve BHP’s medium-term iron ore production sustainability target of 305 million tonnes per annum (Mtpa) and expected to deliver 20 Mtpa once operational.

The initiative will utilise components from the Yandi mining hub, which includes upgrading current infrastructure and installing a new primary and secondary crusher at Yandi to support future production. 

Additionally, the project’s scope involves constructing a land bridge and a 13-kilometre haul road linking Yandi with Ministers North.

Tim Day, BHP Western Australia Iron Ore Asset President, says: “Yandi has been an important part of our WA iron ore operations for more than 30 years. 

“Our investment in Ministers North helps us build on that legacy. We're making the most of the infrastructure, skills and experience we already have to bring a new orebody into production and keep our high-quality Pilbara iron ore flowing. 

“This is about maintaining continuity as Yandi matures naturally and backing the future of the Pilbara and our iron ore business.”

The new joint venture project is owned by BHP, Itochu Corporation and Mitsui & Co, with split shares of 85%, 8% and 7%.

Smelter and refinery expansion

BHP’s investment announcement coincides with the company's recent decision to award a staged design and supply contract to China Nerin Engineering (Nerin).

This key collaboration supports BHP's plans to scale up its Copper South Australia (SA) asset, boosting the production of an essential mineral that is projected to experience a 70% surge in global demand by 2050.

Valued at more than AU$200m (US$140m), the contract will be rolled out in distinct stages as BHP progresses through its study and design optimisation phases.

Under this framework, both partners can work together to design sophisticated smelting and refining solutions ahead of BHP's potential Final Investment Decision (FID) in the 2027 calendar year.

Rashpal Bhatti, Group Procurement Officer at BHP, adds: “Partnering with Nerin reflects our focus on building a globally connected supply chain to support Copper South Australia’s growth.

"Nerin brings the scale and technical expertise to progress complex smelting and refining solutions.

“As demand for copper intensifies, partnerships like this enable us to access innovation across key markets and support reliable project delivery.”