BHP highlights copper growth and U.S. mining appeal

BHP highlights copper growth and U.S. mining investment appeal while staying silent on major acquisitions after the Anglo-Teck deal.

BHP, one of the world’s largest mining companies, underscored its strong potential for copper growth and the investment appeal of the United States, while avoiding any discussion of large-scale acquisitions.

CEO Mike Henry and Chief Financial Officer Vandita Pant addressed shareholders in the first major Q&A session since last week’s blockbuster Anglo American–Teck Resources merger, a $53 billion deal that reshaped the mining sector.

Copper positioned as BHP’s growth engine

Henry emphasized that copper remains central to BHP’s growth strategy.

“The copper growth story for BHP is one of the big stories. We have made so much progress… We now have four big copper growth basins on top of the 28% copper growth we have seen in recent years,” he told investors.

Those basins include:

• Vicuña project in Argentina, a 50-50 joint venture with Lundin Mining.
• Resolution Copper in the U.S., developed alongside Rio Tinto.
• Escondida in Chile, the world’s largest copper mine.
• BHP’s South Australian copper operations.

Henry sidestepped questions about a potential move for NGEX Minerals, a Toronto-listed company also active in Argentina’s Vicuña district.

Silence on mergers and acquisitions

Market watchers expected BHP to comment on potential M&A activity, given the momentum sparked by the Anglo-Teck deal. However, no remarks were made on the subject.

Just a year ago, BHP scrapped its own $49 billion bid for Anglo American, which would have dramatically boosted its copper portfolio in a single transaction.

Analysts suggest that BHP is now focused on expanding its existing copper assets in Argentina and North America, with copper increasingly seen as critical to the global energy transition.

U.S. seen as attractive mining destination

Henry highlighted the competitive environment in the United States, noting that its energy costs are “about half of those in Australia.” He added that this advantage is helping the U.S. attract new mining investment, while Australia continues to review its productivity levels.

Delays at Canada’s Jansen potash project

The other key topic was BHP’s Jansen potash project in Canada. Henry admitted that the company’s projected internal rate of return (IRR) faces pressure after July’s updated capital expenditure guidance and a delay to first production.