Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks

Big year for the red metal.

| 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

Key points
  • The copper price hit a new record on Tuesday, storming past US$12,000 per tonne in London.
  • Its price has now risen by nearly 40% since the start of the year, with some analysts projecting a long-term bullish outlook for the metal.
  • Several leading ASX 200 mining stocks have been expanding their exposure to copper, including BHP shares and two other mining titans.

The copper price surged to a new all-time high on Tuesday, breaking above US$12,000 per tonne on the London Metal Exchange for the first time on record.

In total, the red metal has now rallied by almost 40% since the start of the year.

Not surprisingly, this powerful performance has outpaced the broader market, with the All Ordinaries Index up by 7% across the same period.

The latest leg higher appears to have been sparked by concerns over potential US copper tariffs.

Reports suggest this setting has triggered a rush of imports into the US, creating supply tightness amongst offshore manufacturers.

However, copper's longer-term outlook also appears highly constructive, underpinned by both traditional and emerging applications.

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

Image source: Getty Images

Modern-day metal

Copper plays a key role in the global energy transition thanks to its use in electric vehicles (EVs) and associated charging infrastructure.

It is also a critical component in AI data centres due to its conductivity and efficiency in power distribution and cooling.

According to BloombergNEF, such trends could push copper into a structural supply deficit as early as 2026, as electrification-driven demand outpaces new mine supply.

The research firm believes copper is facing the most acute pressure amongst all transition metals.

This stems from rapid growth in data centres, grid expansion, and EV adoption worldwide. 

Overall, BloombergNEF estimates that energy-transition demand for copper could triple by 2045, pushing the market deeper into deficit unless investment into new supply ramps up.

And leading ASX 200 mining stocks appear to be taking notice.

In recent years, several of Australia's largest mining companies have been actively increasing their exposure to copper.

Below, we present three ASX 200 mining stocks with a growing emphasis on copper.

BHP Group Ltd (ASX: BHP)

BHP is one of the world's biggest diversified miners, best known for its iron ore and metallurgical coal production to support global steelmaking.

However, through a series of acquisitions and expansions, the company has significantly increased its exposure to copper in recent years.

Today, this ASX 200 mining stock is considered the world's largest copper producer.

In FY25, BHP produced two million tonnes of copper from its portfolio of assets in Chile, Peru, South Australia, and Arizona.

Copper has also become a key earnings driver, accounting for 45% of the group's underlying operating earnings (EBITDA) during the year.

In the past six months, BHP shares have jumped by 25% to $45.59 apiece at the time of writing.

They are trading near 52-week highs on Wednesday morning.

South32 Ltd (ASX: S32)

South32 is a diversified mining company producing a suite of commodities across three geographical regions: Australia, South America, and Southern Africa.

Its operations include the production of bauxite, aluminium products, nickel, zinc, lead, silver, metallurgical coal, and manganese.

And then there's copper.

In 2022, South32 acquired a 45% interest in the Sierra Gorda mine in Chile, which is now helping to drive copper output for the company.

The project already boasts a mine life of more than 20 years, with potential for further upside through improved production efficiency, resource expansion, and exploration.

In FY25, copper production from Sierra Gorda grew by 20% from the previous year.

Separately, South32 has also been growing its pipeline of copper exploration opportunities.

In FY25, the group expanded its strategic alliance with Noronex Ltd (ASX: NRX) to explore for copper in Namibia and Botswana.

It also acquired a 19.9% stake in American Eagle Gold Corp and its NAK copper and gold project in Canada.

South32 shares have jumped by 21% over the past six months.

Fortescue Ltd (ASX: FMG)

Fortescue is renowned for its iron ore empire in the Pilbara region of Western Australia.

However, behind the scenes, the company has been growing its exposure to critical minerals, with a particular focus on copper.

Earlier this month, Fortescue moved to broaden its exposure to copper by agreeing to acquire the remaining 64% of Toronto-listed Alta Copper Corp (TSX: ATCU).

The $151 million deal will now give Fortescue control of the Canariaco copper project in Peru.

A recent economic evaluation of Canariaco forecasts annual production to average 134,000 tonnes of copper across a 27-year mine life.

Fortescue shares have lifted by 46% since the tail end of June.

Motley Fool contributor Bart Bogacz 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Resources Shares

Capricorn Metals expands Golden Range Project with Piastri acquisition

Capricorn Metals boosts its Western Australian footprint by acquiring the Piastri Project, expanding gold and antimony exploration potential.

Read more »

A hand holding a lump of rare earths material against a blue sky.
Resources Shares

Brazilian Rare Earths unveils Rocha da Rocha scoping study

Brazilian Rare Earths shares are in focus after a landmark scoping study forecast world-leading economics for its Rocha da Rocha…

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

If I invest $10,000 in Fortescue shares, how much passive income will I receive in 2027?

The dividend outlook for this major miner might surprise you.

Read more »

Woman with gold nuggets on her hand.
Resources Shares

Wia Gold completes $125m placement to fund Kokoseb Gold Project

Wia Gold completes $125 million placement to fully fund the Kokoseb Gold Project following resource growth and feasibility success.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Up 73%! 3 reasons I'd still buy Mineral Resources shares today

A leading expert forecasts more outperformance from Mineral Resources' surging shares.

Read more »

Pile of copper pipes.
Resources Shares

This ASX mining stock could jump in value by more than 300%: Broker

A new acquisition ticks the right boxes.

Read more »

gold, gold miner, gold discovery, gold nugget, gold price,
Resources Shares

Medallion Metals announces Macmahon as preferred contractor for Ravensthorpe Gold Project

Medallion Metals names Macmahon as preferred mining contractor for its Ravensthorpe Gold Project, unlocking contract cost savings and project momentum.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

St George Mining reports major Araxá resource upgrade

St George Mining share price is in focus after a major upgrade to its Araxá rare earths and niobium resource…

Read more »