BHP’s resolve to expand its copper portfolio is being tested as it faces pushback from Anglo American’s investors over its takeover proposals. Anglo has given BHP a one-week window to present a binding offer after rejecting three previous proposals, which the company said undervalued it and would be difficult to execute.
The key assets at stake are Anglo’s world-class and longer-life copper mines in Latin America, including Colluhuasi, Quellaveco, and Los Bronces. These mines are expected to produce around 532,000 tons of copper this year, which would significantly boost BHP’s copper output.
However, the complicated structure of BHP’s deal, resistance from the Anglo board, and investors’ demands for a bigger payout are posing challenges for BHP. Investors are also scrutinizing BHP’s asset portfolio and questioning how much it needs to build its copper business.
Analysts note that BHP’s copper output is expected to peak at around 1.9 million tons in 2026 and then gradually decline to about 1.6 million tons in 2028 due to a forecast slump in output at its giant Escondida mine. This underscores the industry-wide challenges of falling grades and a lack of new deposits among producers in Latin America.
The battle for Anglo’s copper assets is a crucial test of BHP’s resolve, as copper is seen as a key commodity for the green energy transition and has growing demand from sectors like electric vehicles and data centers. The outcome of the negotiations could have significant implications for the future of BHP’s copper portfolio.