Sydney (AFP) – Australian mining titan BHP reported Tuesday a solid rise in annual profit boosted by surging prices for copper — a key metal for the global energy transition and AI data centres.
Net profit climbed 9 percent from a year earlier to US$9.8 billion in the financial year to June 30, said the resources group, the world’s biggest miner by market value. Revenue rose 14.6 percent to US$58.8 billion.
BHP is the world’s biggest copper producer and plans to expand output of the red metal by about 40 percent by 2035, the group said in a statement. The miner also reported record iron ore production and a strong result in coal, but copper was the star commodity and expected to remain so.
“Copper is the engine that is driving BHP’s growth,” chief executive Brandon Craig said. Copper prices were 26 percent higher on average in the 2026 financial year, the company said. The metal has eclipsed iron ore as the biggest earner for BHP — generating more than half of the group’s operating profit for the first time.
Global copper demand is expected to grow to more than 50 million tonnes by 2050, it said. As economies expand, copper will be required to build electricity networks for the transition away from fossil fuels, and to create data centres for artificial intelligence, BHP said.
“We also see a looming global copper supply challenge, as existing copper mines age and with the pipeline of potential projects less healthy than in previous cycles.” The group said it would pay shareholders a four-year record high dividend of US$1.72 a share — equal to US$8.7 billion.
BHP shares climbed 3.3 percent to Aus$64.24 in morning trade.
© 2024 AFP
