BHP Group has made a substantial bid of $38.8 billion for Anglo American, a smaller rival, in a move that could create the world’s biggest copper mining company. This proposed merger follows a series of significant transactions in the mining industry over the past several years. Some notable deals include Polymetal International’s sale of its Russian assets to Mangazeya Plus, Teck Resources’ coal business sale to Glencore, and Newmont’s acquisition of Newcrest Mining.
Australian mining giant BHP Group has offered to acquire its U.K.-based rival Anglo American in a deal valued at approximately $38.9 billion. The proposed all-share transaction would create the world’s largest copper mining company, with a combined global copper output of around 10%. The offer comes amid surging copper prices driven by increased demand for the metal used in electric vehicles and renewable energy. Anglo American’s board is currently reviewing the offer, which includes a condition to spin off two of its South African units.
BHP Group’s $39 billion acquisition of Anglo American highlights the increasing demand for copper in the energy transition. The combined companies would control 10% of global copper production, making BHP the leading producer. Copper’s high conductivity and corrosion resistance make it essential for industries such as automotive, electricity, and construction. Despite projected growth in copper demand, supply constraints, including mine closures and production cuts, have led to a market deficit and rising prices. Analysts predict a shortage of refined copper in 2024, pushing prices higher. The acquisition indicates a trend in the mining industry where companies are seeking to secure copper assets to meet growing demand.
Copper mining company Freeport-McMoRan beat Wall Street estimates for the first quarter of 2023, driven by increased output and declining costs. Production of copper surged by 15% to 1.1 billion pounds, propelled by a 49% surge in Indonesia operations. The company is collaborating with the Indonesian government to maintain export approvals for copper concentrates and anode slimes amid a raw material export ban. Freeport-McMoRan also benefited from higher gold prices, doubling its sales volume to 568,000 ounces. Average cash costs per pound of copper reduced to $1.51, contributing to lower operating expenses.
