Copper has become the main driver of growth for mining giant BHP, helping the company lift annual profit by 9 percent as demand for the metal rises from the global energy transition and artificial intelligence industries.
BHP, the world’s largest mining company by market value, reported net profit of US$9.8 billion for the financial year ended June 30, up from a year earlier. Revenue increased 14.6 percent to US$58.8 billion.
The Australian mining giant said copper prices averaged 26 percent higher during the year, making the metal the company’s biggest source of operating profit for the first time.
Copper accounted for more than half of BHP’s operating profit, overtaking iron ore.
“Copper is the engine that is driving BHP`s growth,” Chief Executive Brandon Craig said.
BHP is the world’s largest copper producer and plans to increase its copper output by about 40 percent by 2035.
The company also posted record iron ore production and a strong performance in coal, but said copper is expected to remain its key growth commodity.
BHP estimates global copper demand could exceed 50 million tonnes a year by 2050.
The metal is increasingly important for electricity networks needed to move economies away from fossil fuels, as well as for the construction and operation of AI data centres.
The company warned that copper supplies could come under increasing pressure as older mines decline and fewer major projects move through the development pipeline.
“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,” BHP said.
The strong results allowed BHP to announce a record dividend for the past four years, with shareholders set to receive US$1.72 per share, or about US$8.7 billion in total.
BHP shares rose 3.3 percent to Aus$64.24 in morning trading.
