International mining behemoth BHP Group continued to add to its copper portfolio in the first quarter of its 2025 financial year, betting on the metal’s long-term role in transport electrification, the global energy transition and emerging market growth.
By 2050, BHP said it expects demand for copper to climb by 70%, given its critical role as an input for solar and wind power infrastructure, plus electric vehicles — which are three times more copper intensive than internal combustion engines.
The rise of AI-enabled services means data centres, which require copper for power and cooling processes, will further fuel demand — potentially by as much as six-fold by 2050.
Demand is underpinned by economic growth in developing countries, where rising incomes mean a growing market for manufactured copper-intensive products such as air conditioners and washing machines, and increasing access to electricity in rural areas. India’s copper market, for example, is forecast to reach five times its pre-pandemic size by 2050.
To match the growing demand, BHP estimates the copper sector will need investment of about $250bn over the next decade.
With that in mind the group took control of the Filo del Sol and Josemaria copper projects in Argentina. In July, the miner announced a joint venture with Lundin Mining to acquire the projects’ owner, Filo Corp.
“We added to our copper growth prospects in the quarter announcing a proposed 50/50 joint venture in Argentina with Lundin Mining to advance what we consider to be one of the most significant global copper discoveries in decades,” said BHP CEO Mike Henry.
BHP reported a 4% increase in copper production to 476 kilotonnes (kt) for the three months ended September, with full-year guidance unchanged between 1,845kt and 2,045kt.
The improvement was supported by a higher concentrator feed grade and higher recoveries at its Escondida mine in Chile — where it said mining had progressed into areas of higher-grade ore.
Having successfully ramped up production at South Flank — Australia’s largest new iron ore mine in over 50 years — in the previous financial year, the miner reported iron ore production rose 2% year on-year to 65Mt — with Western Australian operations also benefiting from the completion of a port debottlenecking project.
While diminishing Chinese demand has threatened the outlook for iron ore in recent months, Henry is optimistic that recent policy changes would enable a recovery for the group’s top revenue generator.
“China has announced a series of monetary easing policies in an effort to support economic growth and has indicated more significant fiscal stimulus is on the horizon,” he said.
“Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.”
Henry also pointed to signs of stabilisation in BHP’s steelmaking coal business, which has faced price volatility over the past year. While the group reported an 8% year-on-year decline in output in the quarter, production was up 20% when excluding two coal mines that BHP sold a few months ago.
However, BHP has been pulling back production at its nickel operations in response to a global oversupply. Output fell 3% as the group started suspending its Western Australia nickel operations. These will remain idle until it reviews the decision in February 2027.
Meanwhile, in Canada, Henry said the group’s “Jansen Stage 1 potash project is 58% complete after a productive summer period, with first production scheduled in around two years.”
In line with efforts to grow its copper portfolio, the world’s largest mining company by market value made a $49bn bid to buy Anglo American earlier this year, but walked away in May after the rival turned down the offer three times.
While it is unclear what BHP will do when the UK regulations prohibiting further bids are lifted next month, another offer may be on the cards, with the Financial Times reporting last week that Henry had visited SA to meet government officials.
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