BHP’s Mike Henry Highlights $250 Billion Needed for Copper Demand Surge
BHP Group Ltd. Chief Executive Officer Mike Henry emphasized that soaring global demand for copper will necessitate an investment of $250 billion over the next decade. This major capital requirement is expected to drive further mergers and consolidations in the mining industry, as companies seek to pool resources and expertise.
"New deposits in certain key or critical minerals are becoming harder to find, more expensive to develop, and require enhanced capabilities to manage risk and technical complexities," Henry said in a Bloomberg Television interview. He added that companies with scale, strong financial stability, and deep technical expertise, like BHP, are best positioned to succeed in the coming decades.
Henry highlighted copper's essential role in the global energy transition, with demand expected to increase by 70% to 100% by 2050. In response to this projected growth, BHP has been expanding its copper portfolio. In July, the company teamed up with Lundin Mining Corp. in a $3 billion acquisition of Filo Corp. to gain copper assets in South America.
Earlier this year, BHP also made a $49 billion takeover proposal for Anglo American Plc to gain access to its copper mines, but eventually abandoned the bid in May. Due to UK Takeover Panel rules, once a company makes a "no intention to offer statement," it is required to refrain from any takeover efforts for six months. When asked if BHP might make another attempt to acquire Anglo American, Henry declined to comment.
