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BHP has warned that it expects slower growth in China for the rest of the year but maintained a positive view of demand for commodities as it continues to hold talks with China over iron ore contracts. 

The Australian company, the largest global miner by market capitalisation, reported a 1 per cent decline in iron ore production to 64mn tonnes during the three months to September, due to maintenance upgrades of its facilities in Western Australia.

Its copper production increased 4 per cent while steelmaking coal production grew 8 per cent in the quarter. 

BHP has been embroiled in negotiations with China’s state-run iron ore buyer over the terms of future purchasing amid reports that the world’s largest consumer of iron ore has stopped buying some of the miner’s products.

Melbourne-based BHP has refused to comment on commercial negotiations with China Mineral Resources Group, which co-ordinates much of the country’s iron ore purchasing.

BHP made no reference to the talks in its production report but pointed to a slowdown in demand in the coming months. 

“Overall macroeconomic signals for commodity demand remain resilient, and global growth forecasts are moving higher,” said Mike Henry, BHP chief executive. “While we expect some deceleration in growth in [the second half] of [2025], in China we still expect GDP growth of [about] 5 per cent for the year.”

BHP shares opened 2 per cent higher following the release of the production numbers. The company holds its annual meeting this week.

The Australian company, which attempted to buy UK rival Anglo American last year, has increased its exposure to copper through acquisitions in Australia and South America in the past three years and has forged ahead with a major plan to produce potash in Canada as it has looked to reduce its reliance on iron ore.

In contrast, BHP scaled back its steelmaking coal operations with the downsizing of a mine in Queensland after the state imposed higher taxes on commodity companies.