BHP to Cut About 300 Jobs at Pilbara Iron Ore Operations

The logo of BHP, a leading global resources company, is seen on its building in Perth, Australia, on Nov. 24, 2025. Saeed Khan/AFP via Getty Images

Mining giant BHP has confirmed it will cut about 300 jobs at its iron ore mines in the Pilbara region of Western Australia, following a record year of production.

The company said the changes would affect operational roles at its South Flank, Mining Area C, Newman and Jimblebar mines. It said consultation with workers began on Oct. 5, and unions were told the same day.

“Like any business, we regularly review how we work to ensure we can operate safely, effectively and productively,” a BHP spokesperson told The Epoch Times.

The spokesperson said the changes would help the iron ore business keep contributing to the Pilbara and the state, and remain a major employer.

“As we always do, we will seek to redeploy people into other roles elsewhere in the business where possible. We will be working directly with our people on what this change means for them,” the spokesperson said.

Record Output, Rising Costs

BHP’s Western Australian mines produced a record 291.2 million tonnes of iron ore in the year to June 30, up slightly from 290 million tonnes the year before. But output in the June quarter was 74.8 million tonnes, down 3 percent on the same period a year earlier.

The company expects to produce between 286 million and 298 million tonnes in the 2026–27 financial year. In June, it approved the development of a new US$900 million mine, Ministers North, which is expected to produce its first ore in 2028–29.

At the same time, BHP’s annual report showed that the cost of producing a tonne of ore in Western Australia increased from US$18.56 in 2024–25 to US$19.66 in 2025–26, while the average selling price rose 3 percent to US$84.56 a tonne.

Iron Ore Prices Forecast to Fall

The Office of the Chief Economist, which forecasts commodity prices for the federal government, said in its latest outlook (pdf) that the benchmark iron ore price fell by about US$10 a tonne in the September 2026 quarter compared with the June 2026 quarter.

It said seasonally weaker building activity, thin profits at steel mills and large stockpiles at Chinese ports had softened demand.

The office expects prices to keep falling as global supply rises and demand weakens, easing to about US$82 a tonne in 2027 and to about US$64 a tonne by 2031, after adjusting for inflation.

As a result, it forecasts Australia’s iron ore export earnings will drop from $107 billion this financial year to $96 billion in 2027-28 and $79 billion by 2030-31.

Electrical Trades Union WA Secretary Adam Woodage called the cuts a “senseless attack,” and said the union would demand that BHP prove every redundancy was genuinely needed.

“It comes after workers delivered the company a $15 billion profit last year, half of which came from WA iron ore,” he said.

BHP is not the only Pilbara iron ore producer facing pressure to control costs.

Fortescue reported record iron ore shipments in early 2026, but higher-than-expected extraction costs weighed on its quarterly performance and investor response.

The comparison highlights the challenge facing major Australian miners: high production volumes do not necessarily translate into stronger financial performance when operating costs rise and commodity prices come under pressure.

Despite the expected fall in prices, iron ore is forecast to remain Australia’s biggest export, making up more than a quarter of all resource and energy export earnings over the next five years.