BHP Reports 23% Profit Decline Amid Falling Iron Ore and Coal Prices

The mining giant cites weaker Chinese demand and global price drops but highlights resilience in copper operations and potential long-term growth drivers.

• BHP's first-half underlying profit for 2024 fell to $5.08 billion, a 23% drop compared to $6.57 billion in the previous year.
• Declining iron ore and coal prices, driven by reduced demand in China’s property and construction sectors, significantly impacted earnings.
• Copper operations provided a bright spot, with underlying operating earnings rising 44% to $5 billion, supported by tight supply fundamentals and Chinese stimulus measures.
• The company announced a 50-cent interim dividend, marking its lowest payout in eight years and a 30% reduction from the previous year.
• BHP remains optimistic about recovery prospects, citing global interest rate cuts, China's pro-growth policies, and long-term demand from urbanization and energy transition trends.

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The Sydney Morning Herald Australian Broadcasting Corporation