BHP cost blowout drags Australian shares lower

On June 19, 2026 the S&P/ASX 200 slipped almost 1%, closing around 8,822 points after BHP disclosed a major cost overrun at its Jansen potash project in Canada. The stage‑2 cost estimate rose to US$6.9 billion, up 41% from the original forecast, prompting BHP shares to fall about 4% and pulling down the broader mining sector.

Gold prices also weakened, slipping below US$4,200 an ounce as the U.S. dollar strengthened, further weighing on resource stocks. The All Ordinaries index fell 0.97% to 9,038.5. Other miners such as Pilbara Minerals and Sandfire Resources reported declines, while defensive sectors like health care and consumer staples posted modest gains.

In contrast, U.S. markets rose and shipping resumed through the Strait of Hormuz after a tentative U.S.–Iran peace deal, but the Australian market remained under pressure from the BHP news and the fall in gold.