Apr 26, 2024 - Technology

⛏️ Breaking down BHP's flirtation with Anglo

Projected global copper demand based on nations' climate pledges
Data: IEA; Note: Other clean uses includes demand for wind, grid battery storage, other low emissions power generation and hydrogen technology. Chart: Alice Feng/Axios

The world needs more copper to greatly expand low-carbon energy alongside traditional uses of the metal, Ben writes.

Why it matters: This dynamic is front and center as mining giant BHP pursues Anglo American, which today rejected BHP's initial offer.

  • The combined players would control roughly 10% of global output, per Mining.com.
  • BHP cited Anglo's "world class" copper assets when confirming its bid.

The big picture: The chart above shows the International Energy Agency's projection of copper needs under nations' current climate pledges.

  • Multiple analyses tell some version of this story — cleaner grids and vehicles rely on growing volumes, and a supply crunch threatens.
  • "The industry's top executives are all betting on a price surge in the years ahead," the FT reports.

What we're watching: BHP's next move, and whether other Anglo suitors emerge.


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