BHP keeps options open for copper growth

BHP remains flexible in its approach to copper expansion, according to the miner’s president of Australia, Geraldine Slattery.

Speaking on Thursday, Slattery emphasised the miner’s openness to both organic growth and acquisitions as it seeks to bolster its position in the copper market.

“Growth is certainly a theme … we are certainly not fixated on internal or external growth,” Slattery said, addressing speculation about whether BHP might revisit its interest in Anglo American, its London-based peer.

The comments come after BHP walked away from a $74 billion takeover bid for Anglo American in May.

The offer, which was rebuffed three times, would have given BHP access to Anglo’s extensive copper assets at a time when demand for the red metal is surging, driven by the global energy transition and electrification.

While Slattery refrained from confirming any renewed interest in Anglo, it highlights BHP’s flexibility in its strategy in pursuing growth opportunities.

This approach allows the company to adapt to changing market conditions and seize emerging opportunities in a competitive landscape.

Copper remains a cornerstone of BHP’s portfolio as the company aligns itself with the green economy.

The metal is critical for electric vehicles, renewable energy infrastructure, and advanced technologies, and analysts predict a significant supply-demand gap in the coming decades.

The company is showing a disciplined and calculated approach when it comes to valuation after its decision to walk away from the Anglo bid.

This is a stark comparison to when talks surrounding the takeover bid fell over, as it appeared to be a little rushed, which could have been jeopardised by the deal being leaked.

As the global energy transition accelerates, BHP’s focus on copper positions it well to capitalise on long-term demand trends.

Whether through strategic acquisitions or ramping up existing operations, the miner’s strategy reflects confidence in copper’s role in the future economy.