BHP Group Ltd (ASX: BHP) shares are trading in the green on Wednesday afternoon. At the time of writing, the shares are up 1.38% at $48.44 a piece.
The mining giant has had a great start to the year, up 5.86% already in 2026. The share price stormed higher through December last year, too, and is now 19.29% higher than where it was trading this time last year.
What has driven BHP shares higher?
Copper futures rocketed higher into early 2026 and reached record-high levels. Copper futures rocketed past US$6/lbs to an all-time high in early January, extending the huge rally seen throughout December.
For context, on the 1st of December, Copper was US$5.09/lbs, and it eased to around US$5.87 yesterday.
Copper is a key material for the global energy transition, is used in electric vehicles, and is a critical component in AI data centres. And as the world's largest copper producer, BHP has certainly benefited from the surge in copper prices.
At the same time, the mining giant has reported some strong production figures over the past year, meaning it is well placed to absorb some of that extra demand.
4 reasons why I think the shares are a must-buy
1. Production is growing
BHP upgraded its copper production guidance yesterday. Its production guidance has increased for group copper, Escondida, and Antamina. But NSWEC and Samarco are also now guiding to the upper half of their ranges, and BMA is now guiding to the lower half due to ongoing geotechnical challenges at Broadmeadow.
2. The company is expanding
The latest update follows an announcement in December that it has struck up a new US$2 billion infrastructure agreement with Global Infrastructure Partners (GIP), an investment group owned by BlackRock, to own and control 51% of the project due for completion by the end of FY26, subject to approvals. This latest agreement is part of BHP's plan to drive growth through its capital products, strategic acquisitions, and asset development.
3. The business is diverse
BHP is a highly diverse business. While the focus is on copper right now, the mining giant also produces iron ore, nickel, metallurgical coal, and potash. It also produces gold, silver, and uranium at some sites.
This diversity means BHP's share price is not solely reliant on the trajectory of one commodity.
4. It offers passive income
The miner offers a great passive income for investors who need reliable cash flow.
BHP shares have delivered two fully franked dividends a year for over a decade. The payouts peaked at record levels in 2021 and 2022 when iron ore prices surged above US$200 per tonne, pushing BHP's revenue and profit margins sky-high.
Over the past 12 months, BHP paid an interim dividend of 79.1 cents per share on 27 March and a final dividend of 91.9 cents per share on 25 September, both fully franked. That's a full-year passive income payout of $1.71 per share.
