The global mining industry will need to invest $250 billion over the next decade to meet surging copper demand, BHP Group (NYSE: BHP) Chief Executive Mike Henry said, as the sector faces increasing challenges in finding new deposits.
Copper demand could rise 70% to 100% by 2050, with industries related to energy transition expected to account for 23% of demand, up from 7% currently, according to a BHP report from September.
The mining giant’s chief pointed to difficulties in mineral discovery, rising development costs, and greater needs for risk management and technical expertise, suggesting larger companies with robust balance sheets would be better positioned for industry consolidation.
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Average copper ore grades have declined about 40% since 1991, BHP noted, with one-third to one-half of global copper supply potentially facing challenges from declining grades and aging mines over the next decade.
BHP has already moved to strengthen its copper position, partnering with Lundin Mining Corporation in July to acquire Filo for about $3 billion, with the purchased expected to close in the first quarter of 2025. The company also made an unsuccessful bid in excess of $49 billion for Anglo American Group earlier this year, which would have created the world’s largest copper producer with roughly 10% of global market share.
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