BHP has regained its “mojo” in the last five trading sessions after being weighed down by a soft copper price as tensions flared between the US and Iran, plus a strike set to commence at BHP’s Port Hedland Bulk Export Terminal. Unfortunately, we can see plenty of industrial action over the coming years, with AI set to replace thousands of jobs. BHP is already well underway in reducing its headcount at its Escondida copper pit in Chile; the site went fully autonomous in January 2026 with 33 autonomous trucks and 11 autonomous drills operating around the clock.
The Port Hedland dispute: The current industrial action has become contentious, with AI very much in the background. The Combined Ports Unions’ push for recognition of “specialist skills” is, in part, a bid to protect roles as automation reshapes port operations. At the same time, BHP’s use of contingency workers, including freelance electricians paid around $93/hour, suggests the company is already building greater operational flexibility and reducing its reliance on permanent unionised labour.
The industrial relations road is likely to rock the mining space in the coming years, but miners like BHP will be big winners from AI efficiencies over the coming years.
- We like the risk/reward towards BHP back above $60, targeting an eventual test of $70 – MM holds BHP in the Growth and Income Portfolios.
MM is long and bullish towards BHP around $60.50
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