BHP (ASX:BHP) share price lifts despite US mine doubts

A motion to stop BHP's planned US copper mine has passed a major milestone.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BHP Group Ltd (ASX: BHP) share price has spent most of today in the green despite reports a bill to stop its planned copper project will face the US Senate.

Resolution Copper, a joint venture that's 45% owned by BHP and 55% owned by Rio Tinto Limited (ASX: RIO), plans to mine a copper resource located underground at Arizona's Oak Flat.

As The Motley Fool has previously reported, Oak Flat is sacred to the region's San Carlos Apache Tribe.

Reports emerged today that a bill named the Save Oak Flat Act was added to a domestic spending package that passed the US House of Representatives on Thursday. It will now move to the US Senate, where it may be voted into law, disallowing BHP and Rio Tinto to mine the resource.

Let's take a closer look at today's news regarding the resources company.

ASX share price trading halt represented by serious woman putting hand up

Image source: Getty Images

BHP might fall flat at Oak Flat

The BHP share price was posting gains all day despite news an act opposing its planned project has passed the US House of Representatives.

While BHP's stock hasn't been noticeably affected by the reports, the Rio Tinto share price has slipped 0.27% today.

The act notes that Resolution Copper plans to use block cave mining to retrieve copper ore from the deposit. Doing so will destroy the sacred area forever.

It also argues BHP and Rio Tinto's planned mine will likely affect the region's hydrology and pollute its drinking water.

According to reporting by the Australian Financial Review (AFR), the act passed the US House of Representatives on Thursday.

The Save Oak Flat Act will now face the US Senate alongside several measures. There, it might be voted into law.

The AFR states the deposit holds enough copper to supply a quarter of the US's needs for 40 years.

BHP share price snapshot

In the last hour of trade today, BHP shares dipped into the red. Right now, the BHP shares are trading at $41.19, 0.15% lower than the previous close.

This slump is more indicative of the BHP share price lately.

It is currently 2.92% lower than it was at the start of 2021. However, it has gained 12.69% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Two workers on site discuss the next stage of this civil engineering job.
Resources Shares

This ASX mining stock just jumped. Here's what's driving the move today

Nickel Industries shares are in the green today.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Broker Notes

Why this buy-rated ASX mining share is tipped to surge 112%

A leading broker expects this ASX mining share to more than double investors’ money in a year.

Read more »

A woman in high visibility clothing and a hard hat stands in front of an aluminium smelter.
Resources Shares

Rio Tinto just locked in a major deal. Here's why investors are buying today

Rio Tinto shares rise after announcing a major aluminium deal.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Are these 3 ASX 200 mining shares a buy, hold, or sell?

What changes have the experts made to their ratings and price targets since the war in Iran began?

Read more »

A man in a hard hat gives a thumbs up as he holds a clipboard in one hand against a blue sky background.
Resources Shares

ASX mining shares have slumped but long-term outlook is positive

The ASX 200 materials sector has slumped 19% since the war in Iran began.

Read more »

Two workers working with a large copper coil in a factory.
Broker Notes

Should you buy this $8 billion ASX 200 copper stock amid surging global demand?

A leading analyst drills into the outlook for this $8 billion ASX copper miner.

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Resources Shares

4 of the best ASX mining stocks to buy in the current environment

Bell Potter is bullish on these miners. Let's see why.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Resources Shares

Buy, hold, sell: Copper, gold, and lithium ASX stocks

These three shares offer exposure to copper, gold, and lithium.

Read more »