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BHP Group

BHP is a global diversified miner mainly supplying iron ore and copper. The merger of BHP Limited and Billiton PLC created the present-day BHP Group. The dual-listed structure from the 2001 BHP and Billiton merger was collapsed in 2022. Major assets include Pilbara iron ore and Escondida copper. Onshore us oil and gas assets were sold in 2018 and the remaining Petroleum assets were spun off and merged with Woodside in 2022, with BHP vesting the Woodside shares it received to BHP shareholders. It purchased copper miner Oz Minerals in fiscal 2023 and is entering the potash market through the development of its Jansen project in Canada. However, due to low nickel prices, BHP is placing its nickel business on care and maintenance in late 2024.

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Rio Tinto (NYSE: RIO) announced that it would invest in Pongamia seed farms in Australia to explore the possibility of using its seed oil as a feedstock for renewable diesel.

RIO to Test Biofuel Crop for Renewable Diesel Production in Australia

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Mining companies turning to acquisitions instead of exploration due to cost and risk. Copper prices down but shortages predicted, prompting industry consolidation.

Copper M&amp;A Frenzy Masks Greenfield Exploration Weakness: Is AI To Blame?

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BHP Group warns of copper shortage as Big Techs invest in AI. Demand could rise by 3.4 million tonnes by 2050, impacting companies like Microsoft, Google, Amazon, Tesla and Nvidia. JPMorgan predicts 4 million tonne deficit by 2030.

BHP Group Sounds Alarm on Copper Supply, AI and EV Growth Could Drive Prices Soaring: Report

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Lifezone Metals Limited's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LZM#NYSE">LZM</a>) Chief Executive Officer, Chris Showalter, is pleased to announce that Lifezone, in partnership with BHP, has formally commenced the project financing process for the Kabanga Nickel Project in Tanzania. In conjunction, Lifezone has received a Letter of Interest from the U.S. International Development Finance Corporation (DFC) that expressed DFC's interest in considering the Project for loans as part of the Project's financing package.
Tanzanian Minister of Minerals, Hon. Anthony Mavunde, welcomed the news, saying: "The Kabanga Nickel Project is a model example of the Government of Tanzania's commitment to fostering sustainable development and economic growth for the benefit of Tanzania and Tanzanians. We are delighted with the announcement that DFC has signed a Letter of Interest for project finance of Kabanga. Building on the 2023 visit to Tanzania by Vice President Harris, DFC's action shows that Tanzania and the United States continue to develop a strong economic partnership founded on a shared vision for sustainable development and we are looking forward to further developing our relationship to pursue our common goals. This project will not only boost our economy regionally and nationally, but also position Tanzania as a leading international player in the global nickel market, contributing significantly to the global energy transition."
Mr. Showalter also commented: "The initiation of the project financing process with Societe Generale is a crucial next step in securing the funding required for Kabanga, and is yet another indicator of the strategic importance of the Project to our global partners. With DFC's interest in supporting Kabanga, the U.S. government clearly recognizes the critical role that sustainable mineral development in Africa plays in the global energy transition. Today's announcement reinforces this vision and again highlights the strong relationship between the United States and Tanzania."
Scott Nathan, Chief Executive Officer of DFC added: "DFC is helping to advance the global energy transition through projects that drive sustainable development and economic growth. The Kabanga Nickel Project represents a significant opportunity to advance responsible mineral development in Tanzania, diversifying critical supply chains and fostering economic resilience in the region."
The DFC loan application would initiate a comprehensive review process; this follows <a href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fir.lifezonemetals.com%2Fnews%2Fpress-releases%2Fnews-details%2F2024%2FLifezone-Metals-Initiates-Process-for-Risk-Insurance-with-U.S.-International-Development-Finance-Corporation-for-the-Kabanga-Nickel-Project-in-Tanzania%2Fdefault.aspx&amp;esheet=54125613&amp;newsitemid=20240923733638&amp;lan=en-US&amp;anchor=Lifezone%26%238217%3Bs+August+27%2C+2024+announcement&amp;index=1&amp;md5=f757042432b47c95de66350df5fb940b">Lifezone's August 27, 2024 announcement</a> that DFC would be evaluating political risk insurance coverage for future investments in Kabanga.
Kabanga is one of the world's largest and highest-grade undeveloped nickel sulfide deposits. By utilizing Lifezone's Hydromet technology, the project is expected to significantly reduce emissions compared to traditional smelting methods.
Kabanga is supported by the Partnership of Global Infrastructure and Investment (PGI), which is a values-driven, high-impact, and transparent infrastructure partnership that was created to meet the enormous infrastructure needs of low- and middle-income countries and to support the United States' and its allies' economic and national security interests. Kabanga is also recognized as a project within the Minerals Security Partnership, a collaboration of 14 countries and the EU to catalyze public and private investment in responsible critical minerals supply chains globally.
DFC is America's development finance institution. It partners with the private sector to finance solutions to the most critical challenges facing the developing world today across sectors including energy, infrastructure, healthcare, agriculture, and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
Societe Generale appointed as lead financial advisor to Kabanga Nickel Limited
Societe Generale has been appointed as the lead financial advisor to Kabanga Nickel Limited, a subsidiary of Lifezone that is managed by Lifezone and in which BHP has a 17% interest.
Lenaig Trenaux, Global Head of Batteries, Mining and Industries, Societe Generale, commented: "Societe Generale supports its clients in the energy transition, through dedicated solutions, and a commitment to contribute to sustainable finance. We are very pleased to be working jointly with Lifezone Metals and BHP to deliver the Kabanga Nickel Project, aiming to foster development in Tanzania and feed the energy transition with a large volume of low carbon critical mineral."
Societe Generale brings world-leading expertise in large-scale debt financing for mining projects globally. In cooperation with BHP, Lifezone and Societe Generale will look to optimize Kabanga's capital structure through a combination of multi-source project-level debt and equity.

Lifezone Metals and BHP Begin Project Financing for Tanzania's Kabanga Nickel, Supported by US DFC

Rio Tinto (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rio#NYSE">RIO</a>) announced that it would invest in Pongamia seed farms in Australia to explore the possibility of using its seed oil as a feedstock for renewable diesel. RIO sees biofuels as an avenue to reduce the dependence on fossil diesel, which accounts for around 10% of its emissions footprint in Australia.
To achieve net-zero Scope 1 and 2 carbon emissions by 2050, Rio Tinto has chosen electrification as the long-term solution for replacing the use of diesel in its fleet. While electrification is in progress, the company is looking at other quicker options to lower diesel-sourced emissions, such as biofuels.
Australia does not yet have a biofuel feedstock industry capable of meeting domestic demand. Rio Tinto expects that the pilot will play an important role in addressing this gap while supporting its journey to achieve decarbonization goals.
<h2>Rio Tinto Joins Forces With Midway for Pongamia Farm Trial</h2>
Pongamia is a fast-growing tree that is native to northern Australia. It produces large numbers of seeds, which are rich in oil and protein. The seeds can be processed into renewable diesel, which offers a significant reduction in carbon emissions compared with fossil fuel diesel.
After the extraction of oil, the seed pod and meal can be processed for other uses such as cattle feed. Pongamia has other benefits, it is drought tolerant, salinity and flood resistant, with low water, fertilization and pest control requirements making it easy to grow.
Rio Tinto is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields.
RIO has partnered with Midway Limited to oversee the planting and management of the seed farms. The companies will plant approximately 750,000 Pongamia saplings.
<h2>Rio Tinto&#39;s Decarbonization Efforts</h2>
In 2023, Rio Tinto&#39;s Scope 1 and 2 emissions were 32.6Mt CO2e, which marked a reduction of 5.5% from its 2018 baseline. It plans to invest capital in the range of $5- $6 billion by 2030 to deliver on its decarbonization strategy.
In July, RIO announced that it is set to install carbon-free aluminum smelting cells at its Arvida smelter in Qu&eacute;bec, Canada, utilizing the first technology license issued by the ELYSIS joint venture. The groundbreaking ELYSIS technology aims to eliminate all direct greenhouse gases from the conventional aluminum smelting process by producing oxygen as a byproduct while improving efficiency by producing more aluminum at lower costs.
In May 2024, Rio Tinto and BHP Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) teamed up to trial large battery-powered haul trucks manufactured by Caterpillar (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cat#NYSE">CAT</a>) and Komatsu (OTC: <a class="ticker" href="https://www.benzinga.com/stock/kmtuy#OTC">KMTUY</a>) in the Pilbara region of Western Australia. The trials will kick off with two Cat 793 haul trucks in 2024, followed by two Komatsu 930 haul trucks in 2026.
BHP will trial the Caterpillar trucks while Rio Tinto will test the Komatsu trucks. This collaboration between two leading global miners with two of the world&#39;s largest haul truck manufacturers seeks to address the critical challenge of achieving zero-emissions haulage in the mining sector.
Even though electrification is the most efficient and cost-effective solution to reduce the use of fossil diesel in mining fleet and equipment, Rio Tinto does not expect mass deployment of battery electric haul trucks at its operations to be technically or commercially feasible before 2030.
In the meantime, Rio Tinto intends to explore other avenues like biofuels to reduce diesel-sourced emissions. In June 2023, its Boron operation in California fully transitioned its heavy machinery from fossil diesel to renewable diesel. It is the first open pit mine in the world to achieve this feat.&nbsp; The company expects to replicate this at its Kennecott copper operation in Utah this year. It is also investigating the usage of biofuels in scenarios where electrification may be challenging to implement.
<h2>RIO&#39;s Price Performance &amp; Zacks Rank</h2>
In a year, shares of Rio Tinto have gained 2.2% against the industry&#39;s 2.8% decline.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b0/78685.jpg?v=1692237515" />
Image Source: Zacks Investment Research
Rio Tinto currently has a Zacks Rank #3 (Hold).
<a href="https://www.zacks.com/stock/news/2339414/rio-to-test-biofuel-crop-for-renewable-diesel-production-in-australia?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2339414">To read this article on Zacks.com click here.</a>

The recent uptick in mining mergers and acquisitions (M&amp;A) is masking the slowdown in greenfield exploration projects. Companies are increasingly relying on acquisitions rather than the expensive and risky process of discovering new deposits.
After making a new all-time high in May, copper has declined and stepped down from the headlines, leaving gold in the top spot. Despite copper's price decline, its looming shortages continue to trouble analysts, who project significant <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40831930/copper-deficit-to-reach-4-million-tons-by-2030-analyst-predicts-mining-electrificat">discrepancies between supply and demand</a> in coming years.
BHP Group Ltd.&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) Oak Dam project in Australia, discovered in 2018, presents one of the few large-scale greenfield copper prospects in development today. The exploration target is an estimated 500 million to 1.7 billion tons of ore with a copper grade of 0.8-1.1%, an exceptionally promising find.
Globally, there would be few companies conducting drilling campaigns of this scale, to this depth," BHP's leading geologist Michael Fonti said <a href="https://www.bnnbloomberg.ca/business/international/2024/09/19/a-copper-ma-frenzy-masks-big-miners-hesitation-to-build/">for</a> Bloomberg.
<h1 class="wp-block-heading">Buy, Don't Build</h1>
Yet, despite Oak Dam's promise, even BHP, the world&#8217;s largest mining company, focuses more on acquisitions than new developments. 
The company bought OZ Minerals for $6.4 billion while failing to complete a $49 billion acquisition of Anglo American, which owns significant copper assets in South America.
Still, BHP expanded its foothold on that continent by <a href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition">recently acquiring</a> the Filo copper project on the Argentina-Chile border in partnership with Lundin Mining.
The acquisition trend is evident across the industry, as rising costs, long permitting timelines and geopolitical uncertainties make greenfield exploration unattractive. Less than a quarter of mining projects approved between 2019 and 2023 were greenfield developments.
<h1 class="wp-block-heading">Digging Through the Past</h1>
The economics of new mining developments showcase the slowdown. The initial capital expenditures (capex) to build a mine have skyrocketed. 
For instance, the Dundee Precious Metals project in Serbia has an estimated capex of $381 million, a hefty price tag for a mine expected to produce just over 129,000 ounces of gold annually.
The cost per ton of copper production has exceeded $44,000 <a href="https://aheadoftheherd.com/copper-mines-becoming-more-capital-intensive-and-costly-to-run/">already in 2022</a> AOTH estimated, with projects such as Cobre Panama exemplifying this trend. Built at a capex of $6.7 billion, its production capacity started at 175,000 tons, yielding a capital intensity of $38,000 per ton — significantly higher than historical averages.
Moreover, many current copper deposits were discovered in the 20th century. Escondida, the world's largest copper mine, was found in the late 1970s, and most of the copper being mined today comes from that era.
"Everything being produced now is from that era of discoveries," BHP's Fonti pointed out.
<h1 class="wp-block-heading">AI-Powered Capex</h1>
Despite the problematic state of greenfield exploration, the latest technological advancements offer hope. Artificial intelligence (AI) can help comb through historical geological data, identifying opportunities a human eye might have missed. Even Oak Dam was nearly missed, as cutting-edge geophysical methods uncovered it.
Startups like KoBold Metals have gone AI from their inception, using advanced data analytics to target new deposits. Its high-profile investors include Bill Gates, Jeff Bezos and Jack Ma. The company might go public in the near future, with speculations about a <a href="https://www.benzinga.com/startups/24/08/40303146/the-next-big-thing-in-mining-bill-gates-kobold-metals-and-its-2-billion-valuation-goal">valuation of $2 billion</a>.
<h1 class="wp-block-heading">The External Factors</h1>
Growing geopolitical instability, driven by conflicts in Eastern Europe, Asia and Africa, can disrupt even the most promising projects.
Recent unrest in Pakistan is threatening to throw the country into deep political turmoil, with the newly minted government losing control over the disgruntled population grappling with an economic crisis, the New York Times <a href="https://www.nytimes.com/2024/08/01/world/asia/pakistan-protests-politics.html">wrote</a> last month. Large-scale protests were particularly notable in Balochistan, a province that houses one of the most notable copper projects, Barrick's Reko Diq $7 billion mine.
Meanwhile, a regulatory shift prompted the Panamanian government to close the Cobre Panama mine, a project that accounted for around 1.5% of the global copper supply. This action left a historical reminder that external factors can nullify years of exploration and billions in investments.
Read Next: • <a href="https://www.benzinga.com/news/24/09/40915786/barrick-forecasts-strong-organic-growth-by-2030-ceo-bristow-touts-undervaluation">Barrick Forecasts Strong Organic Growth By 2030, CEO Bristow Touts Undervaluation</a>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Photo: Shutterstock

Copper M&A Frenzy Masks Greenfield Exploration Weakness: Is AI To Blame?

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Shares of companies in the broader industrial space are trading higher following the Fed's announcement to cut rates by 50 basis points yesterday, which could support investment and economic growth.

TECK

Shares of copper stocks are trading higher amid a rise in the metal's price after the Fed cut rates by 50 basis points at the FOMC yesterday.

Mining company BHP Group Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) has flagged an acute shortage of copper metal as global Big Techs, including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and more, splurge on their artificial intelligence ambitions.
The growth of data centers and AI could boost global copper demand by 3.4 million tonnes a year by 2050, the Financial Times <a target="_blank" href="https://www.ft.com/content/da407b47-4133-470a-9574-508cee43e107" rel="noreferrer noopener">cites</a> BHP&#8217;s CFO Vandita Pant.
Pant told the FT that BHP Group expects global copper demand to reach 52.5 million tonnes annually by 2050, up 72% from 2021. Previously, the mining company had warned against a possible rise in copper prices as the demand outweighed supply.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/08/40441573/bhp-averts-strike-at-worlds-largest-copper-mine-stabilizes-chinese-copper-supply" rel="noreferrer noopener">BHP Averts Strike At World&#8217;s Largest Copper Mine, Stabilizes Chinese Copper Supply</a>
Copper is indispensable for industries pivotal to the zero-emission target, including power cables, electric vehicles, and solar farms. Therefore, a crisis in the metal could hamper the prospects of companies ranging from Microsoft, Google, and Amazon to EV companies like Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and more lest Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), fails to supply AI chips to the Big Techs due to the copper crisis.
<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40831930/copper-deficit-to-reach-4-million-tons-by-2030-analyst-predicts-mining-electrificat" rel="noreferrer noopener">JPMorgan analyst</a> Patrick Jones projected a four million metric tonnes copper deficit by 2030, courtesy of EVs and renewable energy demand. The analyst also blamed China&#8217;s weak demand, which accounts for over 50% of global copper demand.
BHP Group&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40577535/bhp-reports-13-7b-profits-eyes-additional-copper-expansion" rel="noreferrer noopener">copper production rose</a> 9% in fiscal 2024 for the second successive year, reaching 1.9 million tons. The average realized copper prices increased in fiscal 2024.
BHP Group has snapped a 50% stake in Argentina&#8217;s&nbsp;Filo del Sol and&nbsp;Josemaria&nbsp;copper projects, which have the potential to help accomplish a 70% increase in global copper demand by 2050.
BHP Group <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39816439/bhp-shares-trade-higher-as-mining-giant-confirms-record-outputs-for-copper-iron-ore" rel="noreferrer noopener">expects the production</a> to grow by another 4% in fiscal 2025, reaching 1.85 million tons–2.05 million tons.
BHP Group&#8217;s stock has been down close to 14% in the last 12 months. Investors can gain exposure to the stock through the Avantis International Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVDTHE#NYSE">AVDTHE</a>) and Dimensional International Core Equity Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFAI#NYSE">DFAI</a>).
Price Action: BHP stock is up 0.42% at $53.11 premarket at the last check on Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/07/40031488/bhp-to-unlock-south-american-copper-riches-partners-with-lundin-for-filo-acquisition" target="_blank" rel="noreferrer noopener">BHP To Unlock South American Copper Riches: Partners With Lundin For Filo Acquisition</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Photo via Shutterstock

The malaise in China's property sector casts a long shadow over iron ore and coking coal, two key <a href="https://www.benzinga.com/news/24/08/40505731/whitehaven-sells-1-08b-stake-in-major-australian-coal-mine-to-japanese-steelmakers">steelmaking ingredients</a>. 
Last month, the chairman of China's Baowu Steel Group, the world's biggest steelmaker, said the industry faces a "harsh winter" as the world's second-biggest economy grapples with a downturn in its housing market. That market is a key source of demand for steel and a driver of the broader economy, which consumes even more of the alloy.
"In China, which has thrown the wettest of blankets over the global steel sector, steel inventories remain elevated at … seasonal levels not seen since 2014, which was a demonstrably terrible year for the steel industry," said&nbsp;Matthew Warder, CEO of energy-, metals- and mining-focused consultancy and analytics firm&nbsp;Seawolf Research.
Also Read: <a href="https://www.benzinga.com/m-a/24/08/40483226/consol-energy-and-arch-resources-to-merge-in-5b-domestic-coal-entity">Consol Energy And Arch Resources To Merge In $5B Domestic Coal Entity</a>
To try to lower those inventory levels, China has increased its exports of steel, much to the consternation of the global steel industry. At the same time, Chinese steel producers continue to crank out their products and restock inventories, which is supporting the nation's imports of iron ore and metallurgical coal.
Still, the markets for metallurgical coal indicate traders don't expect much of a rally in either iron ore or coking coal anytime soon.
<h3 class="wp-block-heading">Coking Coal</h3>
China's steel industry "trying to produce its way out of the doldrums" even as it pressures global steel prices with cheap exports doesn't bode well for long-term coking coal demand, Warder said.
On Monday, coking coal futures in China were at their lowest point in more than a year.
There are also seasonal factors at play.
Metallurgical "coal prices continued to trend downward as end-use demand for steel continues to contract in China and India, with monsoon rainfalls likely to continue impacting Indian imports and construction activity until mid- September,&#8221; RBC Capital Markets&nbsp;analysts said.
<h3 class="wp-block-heading">Iron Ore</h3>
Seasonality is also affecting iron ore prices amid the longer-term pressure from the downturn in the Chinese property sector.
The most actively traded benchmark iron ore futures contract in Singapore on Monday fell below $100 per metric ton, the general level where higher-cost producers will begin to cut back on production.&nbsp;
While that support may kick in and boost iron ore prices back above that key mark — as has happened recently — it's not out of the question that prices could fall well below what some miners can bear.
BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), one of the biggest iron ore miners in the world, recently maintained its estimate of $80 to $100 per metric ton. 
It arrived at that range because of support from higher-cost junior miners in Australia, Brazil and elsewhere who need more than $100 combined with Chinese producers that can handle $90-$100 and low-cost Indian supplies between $80-$90.
"As we have entered the second half of the calendar year, prices have dipped further into the range over the seasonal low demand period," BHP said. "Meanwhile, shipments from some high-cost suppliers have also declined in tandem.&#8221;
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/m-a/24/08/40216672/glencore-votes-against-spinning-off-coal-remains-open-to-more-acquisitions">Glencore Votes Against Spinning Off Coal, Remains Open To More Acquisitions</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to&nbsp;<a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a>&nbsp;to get started!

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What China's Steelmaking 'Winter' Means for Iron Ore, Coking Coal

BHP Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) recently announced that the South Australian government initiated an assessment of its planned Smelter and Refinery expansion at Olympic Dam.&nbsp;
The SRE plan will be carried out in two phases and is expected to take BHP&#39;s copper production in South Australia from 322,000 tons in fiscal 2024 to more than 500,000 tons&nbsp; by early 2030&#39;s. The figure is expected to reach 650,000 tons in the mid-2030&#39;s.
<h2>BHP&#39;s Efforts to Grow Copper South Australia</h2>
Following the acquisition of OZL in May 2023, BHP established the Copper South Australia province. The deal added Prominent Hill (a high-quality copper-gold mine) and Carrapateena (an iron-oxide-copper&ndash;gold underground mine) to its portfolio. Both mines are located in the highly lucrative Gawler Craton in South Australia and are close to BHP&#39;s Olympic Dam and Oak Dam development project.&nbsp;
The recent development marks an important step for BHP and the South Australian government as they work together to significantly increase copper production in the state. A final investment decision on phase one of the SRE plan is currently scheduled for the first half of fiscal 2027. The SRE plan is expected to unlock around $1.5 billion of synergies, including $0.6 billion already captured via integration
The SRE plan is supported by the recent exploration success at OD Deeps where the company has identified intercepts indicating grades greater than 1% copper as well as solid prospects at Oak Dam.&nbsp;
BHP, in its fiscal 2024 results, declared that Oak Dam&#39;s Inferred Mineral Resource is 1.34 billion tons at 0.66% copper grade and 0.33 grams per ton gold grade.&nbsp;
BHP added that at Prominent Hill, the Wira shaft mine expansion project is in progress with shaft sinking completed around 40%. The hoisting shaft system is expected to extend the mine life to at least 2036.&nbsp;
At Carrapateena, BHP is investing in processing plant capacity to boost throughput from the sub-level cave to 7 Mtpa. The Block Cave Expansion project, which is currently underway, is expected to extend the mine life beyond the existing sub-level cave and increase throughput at Carrapateena up to 12 Mtpa.
<h2>BHP&#39;s Strategies to Boost Copper Portfolio</h2>
BHP&#39;s copper output rose 9% year over year to 1,865 kt in fiscal 2024, the highest in 15 years. It was attributed to improved production at Spence and Carrapateena and the highest production in four years at Escondida.
The company&#39;s copper production in the fiscal 2022-2024 period has outscored competitors.&nbsp;
BHP expects copper production for fiscal 2025 to be in the range of 1,845-2,045 kt. The midpoint of the range indicates year-over-year growth of 4%.&nbsp;
BHP and other miners are now focusing on increasing their exposure to future-facing commodities, such as copper and nickel, which are key components for the green energy transition. It plans to allocate around 65% of its medium-term capital to future-facing commodities.
In July 2024, BHP strengthened its copper resource position and early-stage options by agreeing to acquire a 50% interest in the promising Filo del Sol and Josemaria copper projects in Argentina.&nbsp;
Besides South Australia, BHP has a pipeline of copper projects under development in Chile as well. These include expanding the of Laguna Seca concentrators, improving throughput and increasing recovery at Spence and exploring potential leaching options at Escondida and Pampa Norte. BHP is also planning a new concentrator at Escondida. Final investment decisions are planned from fiscal 2026 to 2029.&nbsp;
BHP also has a 45% interest in the Resolution Copper Project in the United States, one of the largest undeveloped copper projects in the world. It has the potential to become a significant copper producer in North America.
<h2>BHP Stock&#39;s Price Performance</h2>
BHP&#39;s shares have lost 5.3% in a year compared with the industry&#39;s 6.2% decline.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ef/76412.jpg?v=1682824505" />
Image Source: Zacks Investment Research
<h2>BHP&#39;s Zacks Rank &amp; Key Picks</h2>
BHP Group currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation, IAMGOLD Corporation&nbsp;and Eldorado Gold Corporation. CRS, IAG and EGO sport a Zacks Rank #1 (Strong Buy) at present.
The Zacks Consensus Estimate for Carpenter Technology&#39;s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS&#39; shares have gained 125% in the past year.
The consensus estimate for IAMGOLD&#39;s 2024 earnings is pegged at 39 cents per share. The consensus estimate for earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG&#39;s shares have gained 103% in a year.
The Zacks Consensus Estimate for Eldorado Gold&#39;s 2024 earnings is pegged at $1.32 per share. The consensus estimate for earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO&#39;s shares have gained 37% in a year.
<a href="https://www.zacks.com/stock/news/2330985/bhp-s-copper-growth-plans-under-review-by-south-australian-government?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2330985">To read this article on Zacks.com click here.</a>

Earnings

Mid Cap

Penny Stocks

BHP's Copper Growth Plans Under Review by South Australian Government

Shares of US-listed copper companies are trading lower amid reports suggesting that Goldman Sachs cut the commodity's forecast due to softer Chinese demand.

U.S. stock futures were lower this morning, with the Nasdaq futures dipping around 100 points on Tuesday.
Shares of Dyne Therapeutics, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DYN#NYSE">DYN</a>) fell sharply in today's pre-market trading after the company announced new clinical data from its ongoing Phase 1/2 DELIVER trial of DYNE-251 in patients with Duchenne muscular dystrophy who are amenable to exon 51 skipping demonstrating unprecedented dystrophin expression and functional improvement <a href="https://www.benzinga.com/quote/DYN">in multiple cohorts.</a>
Dyne Therapeutics shares dipped 15.6% to $38.89 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
<ul>
<li>Acadia Healthcare Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACHC#NASDAQ">ACHC</a>) shares fell 7.2% to $76.07 in pre-market trading.</li>
<li>United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) shares fell 5.8% to $35.70 in pre-market trading. Vice President Kamala Harris has expressed her support for American ownership of United States Steel, amidst ongoing foreign acquisition attempts.</li>
<li>Diversified Energy Company PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEC#NYSE">DEC</a>) fell 5.6% to $11.54 in pre-market trading. Keybanc analyst Tim Rezvan, last week, initiated coverage on Diversified Energy with an Overweight rating and announced a price target of $18.</li>
<li>LG Display Co., Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPL#NYSE">LPL</a>) shares fell 4.4% to $3.96 in pre-market trading.</li>
<li>Arcadium Lithium plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALTM#NYSE">ALTM</a>) shares declined 4.1% to $2.60 in pre-market trading.</li>
<li>Hafnia Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HAFN#NASDAQ">HAFN</a>) fell 4.1% to $7.43 in pre-market trading.</li>
<li>BHP Group Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) shares fell 4% to $52.90 in pre-market trading</li>
<li>Hafnia Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAFN#NYSE">HAFN</a>) fell 3.4% to $7.48 in pre-market trading.</li>
<li>PureTech Health plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRTC#NASDAQ">PRTC</a>) shares declined 3.2% to $21.78 in pre-market trading. PureTech Health, last week, reported a year-over-year decrease in H1 financial results.</li>
<li>The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares slipped 2.6% to $169.15 in pre-market trading  ahead of the Sept. 12 expiration of the company&#8217;s contract with the International Association of Machinists, which could lead to a potential strike. Additionally, Wells Fargo downgraded the stock from Equal-Weight to Underweight..</li>
</ul>
Now Read This: 
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<li><a href="https://www.benzinga.com/news/24/09/40677064/this-analyst-with-87-accuracy-rate-sees-over-24-upside-in-nvidia-here-are-5-stock-picks-for-last-wee">This Analyst With 87% Accuracy Rate Sees Over 24% Upside In Nvidia &#8211; Here Are 5 Stock Picks For Last Week From Wall Street&#8217;s Most Accurate Analysts</a></li>
</ul>

Pre-Market Outlook

Movers

ACHC

ALTM

HAFN

PRTC

Boeing, Dyne Therapeutics And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

BHP Xplor, the six-month accelerator program aimed at revolutionizing critical mineral exploration, has officially opened applications for the 2025 cohort.
Following the success of the 2023 and 2024 cohorts, BHP Xplor is excited to invite early-stage explorers to join its next chapter. Once again, the program is seeking visionary teams focused on uncovering new sources of critical minerals crucial for a sustainable future.
The BHP Xplor program is designed to accelerate participants' exploration opportunities while fostering long-term relationships with BHP. Participants will benefit from up to $500K equity-free funding, expert mentorship, and invaluable connections within BHP's extensive network of suppliers and service providers. &nbsp;
Since inception BHP has entered partnerships with three of program's alumni. The partnerships strive to be industry-leading in how they are structured to foster collaboration and the opportunity for mutual value creation between a major and junior explorer.

BHP Xplor Opens 2025 Cohort Applications to Propel Critical Mineral Exploration,  Seeks Visionary Teams for 2025 Program, Offering $500K in Equity-Free Funding

The South Australian government has initiated the application and assessment process for BHP's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) proposed expansion of its Olympic Dam copper smelter and refinery.
If approved, this project would significantly boost BHP's copper production capabilities by introducing a second <a target="_blank" href="https://www.benzinga.com/topic/copper" rel="noreferrer noopener">copper</a> smelting furnace to complement and expand the existing facilities.
BHP, the world's largest mining company, views this expansion as a milestone in its strategy to enhance copper output in this region.
"We are already growing BHP's copper production in South Australia with projects and studies underway at all of our operating sites, and we're moving at pace to potentially double our current production by the middle of the next decade," <a target="_blank" href="https://www.bhp.com/news/media-centre/releases/2024/08/bhp-takes-next-step-in-smelter-and-refinery-expansion-at-copper-south-australia" rel="noreferrer noopener">said</a> Anna Wiley, BHP's Asset President for Copper in South Australia.
Now read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40577535/bhp-reports-13-7b-profits-eyes-additional-copper-expansion" rel="noreferrer noopener">BHP Reports $13.7B Profits, Eyes Additional Copper Expansion</a>
Expansion plans include the construction of a second copper smelting furnace at Olympic Dam. The miner aims to increase production to 500,000 tons per year of refined copper cathode by the early 2030s, potentially boosting output to 650,000 tons per year by the mid-2030s.
This target represents a significant increase from the approximately 322,000 tons produced in the last financial year.
The company's copper operations in South Australia include Prominent Hill and Carrapateena underground mines. These sites supply copper concentrate to the Olympic Dam smelter and refinery complex.
Additionally, BHP is progressing its exploration at the Oak Dam prospect, where it recently announced an inferred mineral resource of 1.34 billion tons at a copper grade of 0.66% and a gold grade of 0.33 grams per ton.
This includes a higher-grade area containing 220 million tons of 1.96% copper and 0.68 grams per ton of gold.
The expansion of copper production aligns with BHP's broader economic and commodity strategy. Copper is increasingly seen as a pivotal resource in the global energy transition, essential for electric vehicles, renewable energy infrastructure, and various electronic applications.
Despite anticipated short-term surplus, the company sees copper pricing moving into a phase of durable outperformance, as <a target="_blank" href="https://www.bhp.com/investors/economic-and-commodity-outlook/2024/08/bhps-economic-and-commodity-outlook" rel="noreferrer noopener">stated</a> in a recently published commodity outlook.
The final investment decision on the first phase of the smelter and refinery expansion is anticipated in the first half of the 2027 financial year.
Price Action: BHP shares are trading lower by 0.11% to $55.07 premarket at the last check on Friday.
Also read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40576919/goldman-sachs-lowers-oil-price-forecasts-says-us-supply-beating-expectations-downpl" target="_blank" rel="noreferrer noopener">Goldman Sachs Lowers Oil Price Forecasts, Says US Supply ‘Beating Expectations,' Downplays Libya Output Disruptions</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
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Legal

South Australia Begins Review Of BHP's Major Copper Expansion

BHP Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bhp#NYSE">BHP</a>) reported a 2% year-over-year increase in underlying attributable profit from continuing operations at $13.7 billion for fiscal 2024 (ended June 30, 2024).&nbsp;The growth was attributed to higher prices and sales volumes in BHP&#39;s iron ore and copper operations, productivity initiatives, cost discipline and favorable raw material costs. This offset the impact of lower energy coal and nickel prices and higher labor costs on profits.
BHP&#39;s underlying earnings per share were $2.70 compared with $2.65 in fiscal 2023. Earnings per American Depositary Share&nbsp;were $5.39s, higher than $5.30 in the previous fiscal year. The metric missed the Zacks Consensus Estimate of $5.52. BHP&#39;s each ADS represents two fully-paid ordinary shares.
<h2>BHP&#39;s FY24 Revenues Up 3%</h2>
Revenues for fiscal 2024 totaled $55.7 billion, which beat the Zacks Consensus Estimate of $54 billion. The top line was 3.4% higher than the prior fiscal year. The improvement was due to higher prices and sales volumes for iron ore and copper compared with the prior fiscal.&nbsp;&nbsp; This was offset by lower energy coal and nickel prices, and lower steelmaking coal volumes following the divestment of Blackwater and Daunia on April 2, 2024.
The Iron ore segment&#39;s revenues rose 13% year over year to around $28 billion and revenues in the Copper segment increased 16% to $18.6 billion. Both segments benefited from higher volumes and prices. The Coal segment&#39;s revenues plunged 30% to $7.7 billion.
<h2>BHP Delivers Solid Production Numbers for Iron &amp; Copper</h2>
The company&#39;s total iron ore production for fiscal 2024 was a record 260 Mt, up 1% year over year. Western Australia Iron Ore (WAIO)&nbsp; delivered a record iron ore production of 255 Mt (287 Mt on a 100% basis). This reflects solid supply-chain performance with increased capacity unlocked by the record production at South Flank. These gains helped offset the impacts of the continued tie-in activity for the Rail Technology Program 1.
Copper production rose 9% year over year to 1,865 kt, the highest in 15 years. Nickel production was up 2% to 81.6 kt
<h2>BHP Witnesses 4% Rise in EBITDA</h2>
Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4% from the prior fiscal to $29 billion. Higher revenues and lower diesel and acid prices were offset by higher labor costs. Productivity initiatives and BHP&#39;s efforts to control costs offset higher labor costs. The underlying EBITDA margin was 54%, flat with the prior fiscal. &nbsp;
For the Iron ore segment, underlying EBITDA was up 13% year on year to $18.9 billion while the Copper segment&#39;s underlying EBITDA increased 29% to $8.6 billion. The Coal segment&#39;s underlying EBITDA plunged 54% year over year to $2.3 billion.
Profit from operations (including exceptional items of $6.1 billion) declined 24% year over year to $17.5 billion.&nbsp;
In fiscal 2024, BHP&#39;s attributable profit (for total operations) declined 39% year over year to $7.9 billion, which included an exceptional loss of $5.8 billion. The figure of $5.8 billion includes a $2.7 billion impairment of Western Australia Nickel and a $3.8 billion charge related to the Samarco dam failure, offset by a gain of $0.7 billion on disposal of the Blackwater and Daunia mines.
<h2>BHP&#39;s Cash Flow Improves, Debt Down</h2>
Net operating cash flow for fiscal 2024 was $20.7 billion compared with $18.7 billion in fiscal 2023. The improvement was attributed to lower tax and royalty-related taxation finalization payments compared with the prior fiscal. BHP Group reported a free cash flow of $11.9 billion, a significant improvement from $5.6 billion in fiscal 2023.&nbsp;
The company invested $9.3 billion in line with its Capital Allocation Framework. This included $5.9 billion in organic development and $3 billion in maintenance and decarbonization.
BHP&#39;s cash and cash equivalents as of June 30, 2024, amounted to $12.5 billion compared with $12.4 billion as of June 30, 2023. Capital and exploration expenditures totaled $9.3 billion, up 31% from the prior fiscal year.
Backed by its solid cash flow, BHP continued to repay debt and as of the end of fiscal 2024, net debt was $9.1 billion compared with $11.2 billion as of fiscal 2023 end.
BHP has budgeted capital and exploration expenditures in fiscal 2024 and 2025 to be $10 billion and $11 billion, respectively.&nbsp;
BHP&#39;s board has announced a dividend of 74 cents per share or a total of $3.8 billion. This translates to a payout ratio of 53%.
<h2>BHP&#39;s Production &amp; Unit Cost Guidance for FY25</h2>
BHP&#39;s iron ore production guidance for fiscal 2025 is in the range of 255-265.5 Mt. WAIO&#39;s production is expected to be between 250 Mt and 260 Mt (282 Mt and 294 Mt on a 100% basis).
The company expects copper production to be within the range of 1,845-2,045 kt. Production guidance for metallurgical coal is in the band of 16.5-19 Mt while the guidance for energy coal is in the range of 13-15 Mt.
Unit cost guidance for WAIO is in the range of $18.00-$19.50 per ton. Escondida unit cost is estimated to be in the band of $1.30-$1.60 per pound. Spence unit costs are expected to be between $2.00 and $2.30 per pound. Copper South Australia&#39;s unit cost is anticipated to be between $1.30 and $1.80 per pound. BMA unit cost is expected to be between $112 and $124 per ton.
<h2>BHP Stock&#39;s Price Performance</h2>
BHP Group&#39;s shares have fallen 18.4% year to date compared with the industry&#39;s 10.1% decline.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b5/75580.jpg?v=1860463378" /> 
Image Source: Zacks Investment Research
<h2>BHP&#39;s Zacks Rank &amp; Other Key Picks</h2>
BHP Group currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the basic materials space are Carpenter Technology Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crs#NYSE">CRS</a>), IAMGOLD Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iag#NYSE">IAG</a>) and Eldorado Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ego#NYSE">EGO</a>). CRS, IAG and EGO sport a Zacks Rank #1 (Strong Buy) at present.
The Zacks Consensus Estimate for Carpenter Technology&#39;s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for&nbsp; earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 102.5% year to date.
The consensus estimate for IAMGOLD&#39;s 2024 earnings is pegged at 39 cents per share. The consensus estimate for earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 104% so far this year.
The Zacks Consensus Estimate for Eldorado Gold&#39;s 2024 earnings is pegged at $1.32 per share. The consensus estimate for earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 37% year to date.
<a href="https://www.zacks.com/stock/news/2327883/bhp-group-fy24-earnings-revenues-improve-y-y-on-higher-prices?cid=CS-BENZ-FT-analyst_blog|earnings_article-2327883">To read this article on Zacks.com click here.</a>

Guidance

Dividends

BHP Group FY24 Earnings & Revenues Improve Y/Y on Higher Prices

<a href="https://www.benzinga.com/topic/mining">Leading miner</a> BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) announced its full-year financial results for the fiscal year ending June 30.
Despite a challenging macroeconomic environment, BHP delivered a solid performance. It grew profits by 2% year-over-year to an underlying attributable profit of $13.7 billion.
&#8220;We expect volatility in global commodity markets in the near term, with China experiencing an uneven recovery," CEO Mike Henry <a href="https://www.bhp.com/news/media-centre/releases/2024/08/bhp-results-for-the-full-year-ended-30-june-2024">noted</a>. China's slowing economy, particularly its troubled property market, affects the demand for iron ore — one of BHP's largest revenue sources.
See Also: <a href="https://www.benzinga.com/news/24/08/40568462/mohamed-el-erian-observes-spike-in-gold-says-precious-metal-trading-within-5-of-a-new-record-high">Mohamed El-Erian Observes Spike In Gold Says, Precious Metal &#8216;Trading Within $5 Of A New Record High&#8217;</a>
As a result, BHP's dividend payout for this period was slightly reduced to 74 cents per share. That&#8217;s down from 80 cents the previous year. Still, BHP has maintained its profitability, outperforming some competitors like Vale, whose second-quarter results were hindered by higher expenses.
BHP's chief executive expressed cautious optimism about the outlook of the global economy.
"We anticipate developed economies will face gradual relief from the lingering effects of higher interest rates in coming years," he said.
BHP has been increasingly focusing on copper as a center of its growth strategy. He also acknowledged the rising demand for the metal crucial for <a href="https://www.benzinga.com/topic/clean-energy">green technology</a> transition and outlined plans to expand copper production.
"We have a pathway toward well over two million tons a year of copper," he stated.
BHP&#8217;s copper production grew 9% for the second consecutive year, reaching 1.9 million tons in FY 2024. The copper growth strategy involves expanding its operations in Australia and South America. In South Australia, BHP aims to ramp up production to 650,000 tons per year by the mid-2030s, up from 310,000 to 340,000 tons annually.
The company also made acquisitions, including a 50% stake in Argentina&#8217;s Filo del Sol and Josemaria copper projects. These projects represent some of the most promising copper discoveries in recent years. They will play a critical role in meeting the anticipated 70% increase in global copper demand by 2050.
Yet, regardless of short-term hurdles, like the <a href="https://www.benzinga.com/news/large-cap/24/08/40441573/bhp-averts-strike-at-worlds-largest-copper-mine-stabilizes-chinese-copper-supply">recent strike</a> at the Escondida mine, BHP's robust portfolio and managerial expertise position the company to capitalize on the positive industry trend.
Now Read: 
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<li><a href="https://www.benzinga.com/markets/commodities/24/08/40557219/exclusive-alamos-gold-ceo-talks-growth-possible-open-pit-mine-conflict-with-mexican-governmen">EXCLUSIVE: Alamos Gold CEO Talks Growth, Possible Open-Pit Mine Conflict With Mexican Government</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com">licensing@benzinga.com</a> to get started!

BHP Reports $13.7B Profits, Eyes Additional Copper Expansion

BHP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>) has successfully negotiated a new deal with the union at Chile&#8217;s Escondida copper mine. This agreement comes after a brief but impactful strike that began over a pay dispute. The union demanded a bonus equivalent to 1% of shareholder dividends—around $35,000 per worker at the largest copper <a href="https://www.benzinga.com/topic/copper">mine in the world.</a>
BHP initially offered $28,900, but as tensions escalated, the company upped the offer to around $32,000 and an additional $2,000 in soft loans. The new deal includes key changes to labor conditions, such as optimizing shift changes, increasing equipment utilization, and complying with the Chilean 40-hour workweek law.
Copper prices had spiked during the strike but fell by 0.7% to $9,081 per metric ton once the agreement was announced. The price remains far below the peak of $10,597 per metric ton in May.
Now Read: <a href="https://www.benzinga.com/m-a/24/08/40424535/gold-mining-m-a-heats-up-as-rising-metal-prices-boost-cash">Gold Mining M&amp;A Heats Up As Rising Metal Prices Boost Cash</a>
Escondida is crucial in global copper production, as the last strike in 2017 sank the global copper supply by 7.5% that year. As over 60% of its copper concentrates end up in Chinese smelters, the potential crisis in Chinese copper production has been averted, ensuring copper market stability.
Still, diversification away from Chinese production remains a concern. The top five global copper refineries are all located in China, with a total capacity of over 3.6 million metric tons. According to the analytic firm <a href="https://www.woodmac.com/horizons/securing-copper-supply-china-energy-transition/">Wood Mackenzie</a>, any significant diversification away from Chinese copper processing would have far-reaching implications.
Removing China from the copper supply chain would create an $85 billion gap, a near-impossible challenge for Western economies to fill. As global demand for copper is expected to rise by as much as 75% by 2050, meeting this demand without China would require substantial new investments in smelting and refining capacity.
Earlier this year, Rio Tinto's Copper Boss Bold Baatar pointed out that there are over 60 Chinese copper smelters, but only four in North America—two in the U.S., one in Canada, and one in Mexico.
"The smelting market is not Americas-based. What we have to be really clear on is what's happening in China in the concentrate market. There's been a rapid acceleration of smelting capacity there," Baatar said, <a href="https://www.fastmarkets.com/insights/china-smelters-rio-tinto-copper-andrea-hotter/">per</a> Fastmarkets report.
Read Next:
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<li> <a href="https://www.benzinga.com/markets/esg/24/08/40425149/is-coal-dead-wind-just-ate-its-lunch-this-year-7-energy-etfs-to-watch-in-2024">Is Coal Dead? Wind Just Ate Its Lunch This Year — 7 Energy ETFs To Watch In 2024</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
Image created using artificial intelligence via Midjourney.

BHP Averts Strike At World's Largest Copper Mine, Stabilizes Chinese Copper Supply

Escondida Union Accepts New BHP Contract Offer With Strong Member Backing

BHP's Revised Offer To Escondida Copper Mine Workers In Chile Includes $34K In Bonuses And Low-Interest Loans Per Worker To End Recent Strike

BHP Reaches Preliminary Agreement With Escondida Union In Chile On Copper Mine Strike

Contracts

Management

Latest BHP-Union Talks Fail To Yield Agreement In Chile

BHP Group shares are trading lower amid a miner's union strike in Chile.

BHP sees Brazil as major market for new Canada potash project - Reuters

Iron ore prices bounce to best in a week on upbeat seasonal demand outlook

BHP Group Ltd (BHPLF – Research Report) received a Buy rating and a A$44.00 price target from Macquarie analyst Robert Stein today. The company's s...

BHP Group Ltd (BHPLF): New Buy Recommendation for This Basic Materials Giant

World's top miners set for hit from sharp slump in industrial activity, Deutsche Bank says

Lundin Mining: Attractively Priced Given Excellent Long-Term Growth Potential

BlackRock Advantage International Fund Q2 2024 Commentary

Chinese iron ore posts biggest daily decline in nearly two years

BHP sees Jansen potash project making money with lower costs than rivals

Osisko Gold Royalties: Top-Tier Growth, Top-Tier Assets, Top-Tier Jurisdictions

Berenberg Bank analyst Richard Hatch maintained a Hold rating on BHP Group Ltd (BHPLF – Research Report) yesterday and set a price target of p1,900...

BHP Group Ltd (BHPLF) Receives a Hold from Berenberg Bank

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Press Releases

Escondida | BHP initiates environmental processing to implement a truck transportation system based on an electric trolley

Small Cap

Opinion

Copper Price Set to Rebound Amid Supply Shortages and EV Demand Surge, Miners Respond

Global Copper Market Expected to Reach $548 Billion By 2034 as Bullish Sentiment is Projected Long Term

Strike Ends At World's Largest Copper Mine

BHP invests $350,000 to support the Regina Food Bank in the fight against hunger and to help advance reconciliation efforts

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