BHP profit rises on copper surge
AgenciesAustralian 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...
Mining giant BHP posted a significant increase in annual profit, driven by soaring copper prices, according to their latest financial report. The miner, which holds the title of the world's largest company by market value in the resources sector, reported a 9 percent rise in net profit to U.S.$9.8 billion for the financial year ending June 30. Revenue also grew by 14.6 percent to $58.8 billion.
BHP is the world's leading copper producer and has ambitious plans to expand its copper output by approximately 40 percent by 2035. The company disclosed that copper was the star performer among its commodities, contributing more than half of its operating profit for the first time.
Chief executive Brandon Craig attributed BHP's growth to the "engine" of copper prices, which have increased by 26 percent on average over the past financial year. The surge in copper prices has surpassed iron ore as the biggest earner for the company. Global demand for copper is projected to reach more than 50 million tonnes by 2050, primarily driven by the need for electricity networks in the transition away from fossil fuels and the expansion of data centers for artificial intelligence.
As economies expand, the demand for copper is expected to continue rising, underlining its critical role in the global energy transition and technological advancements.
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