BHP began in a silver mine in outback New South Wales and grew into one of the world’s biggest mining companies. Here’s how it makes its money, and why copper is now its biggest earner.
BHP is one of the largest mining companies in the world and one of the biggest companies on the ASX.
It traces its roots to Broken Hill in New South Wales, where the Broken Hill Proprietary Company was formed in 1885 to mine silver, lead and zinc. It merged with British-listed miner Billiton in 2001, and in 2022 unified its listing so it is now based solely in Australia.
BHP makes money by digging up raw materials and selling them to steelmakers, smelters and manufacturers around the world. Its income rises and falls with commodity prices, which it doesn’t control.
In the year to June 2026, BHP reported revenue of US$58.8 billion and underlying profit of US$13.2 billion, up 30 per cent on the year before.
Iron ore, copper and coal
Iron ore, the main ingredient in steel, has long been BHP’s biggest business. Its mines in Western Australia’s Pilbara region produced a record amount in the 2026 financial year and are among the lowest-cost in the world. The ore is shipped mostly to China, the world’s largest steelmaker.
But copper is now its biggest earner. In the 2026 financial year, copper made up 54 per cent of BHP’s underlying earnings before interest, tax, depreciation and amortisation, ahead of iron ore at 43 per cent. Its largest copper mine is Escondida in Chile, the biggest copper mine in the world, and it also runs Olympic Dam and other operations in South Australia.
Copper is used in power grids, electric vehicles, renewable energy and data centres, and BHP is betting demand will keep growing as the world electrifies.
BHP also mines steelmaking coal in Queensland, although that has become a much smaller part of the business. It is building the Jansen potash mine in Canada, which will produce fertiliser, with first production expected in mid-2027. That project has faced big cost increases.
China, dividends and the risks
China buys a large share of BHP’s iron ore and copper, so a slowdown in Chinese construction or manufacturing can quickly hit its profits.
BHP is a major payer of dividends, which are fully franked, making it popular with Australian retirees and super funds. Because it is so large, its share price can move the whole ASX 200.
The risks include falling commodity prices, rising costs, safety, and environmental issues, including the legal fallout from the 2015 collapse of the Fundão tailings dam in Brazil at the Samarco joint venture.
Brandon Craig became BHP’s chief executive on 1 July 2026, replacing Mike Henry.
