Sydney (AFP) – Australian resources giant BHP reported Tuesday a jump in half-year net profit boosted by demand for copper to meet the world’s need for electrical power. BHP says it is the world’s largest copper producer after raising output by about 30 percent in the past four years, including from its vast Escondida mine in Chile.
“This is allowing us to maximise increased earnings from the recent run up in copper prices as well as gold,” BHP chief executive Mike Henry said. Copper is in demand as countries expand electrical networks to harness renewable energies. The red metal is now the biggest contributor to overall earnings at BHP, Henry said.
“With four compelling growth options across Chile, Argentina, Arizona and South Australia, we are well positioned to capture the forecast higher long-term copper prices,” he said in a statement. The firm also reported record first-half shipments of iron ore from Western Australia.
Overall revenue climbed 10.8 percent from a year earlier to US$27.9 billion in the six months to December 31, BHP said. Profit surged 27.7 percent to US$5.64 billion in the same period.
Looking ahead, BHP said it expected the global economy to grow by about three percent in 2026. “China’s economy is resilient after meeting its around five-percent target last year. India continues to outperform,” Henry said. “We are optimistic that the economic backdrop is supportive for our key commodities.”
© 2024 AFP
