BHP Group Ltd (ASX: BHP) shares are in the spotlight this week.
The miner's shares are down 0.2% at $60 a piece in early morning trade on Tuesday. The stock is now 31% higher for the year to date and 56% higher than 12 months ago.
For context, the S&P/ASX 200 Index (ASX: XJO) has tumbled 0.49% this morning, with over half of the companies in the index falling into the red.
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Why are BHP shares catching attention this week?
BHP shares hit a fresh record high on Friday last week after investors rotated back into diversified miners after the price of copper surged close to a multi-year high.
According to Trading Economics, copper futures climbed to around US$6.4 per pound on Monday, reaching their highest level in more than a week. Stronger investor sentiment comes off the back of signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz.
At the same time, the miner's climate policy is generating headlines this week. The mining giant has reportedly delayed billions of dollars in Pilbara decarbonization projects, according to the Guardian.
In 2019, the miner pledged to reduce emissions from its operations, largely from energy and diesel use at its mines, by 30% by 2030.
It also sought to curtail indirect emissions – from the use of its iron ore and coal by others – which, at that stage, were equivalent to pollution from roughly 126m cars.
But, a leaked document outlines the company's latest plans to decarbonise its network of Pilbara mines, power plants, trains, and diesel truck fleets that make up its Western Australian iron ore division, the Guardian explains.
"The urgency for BHP to source renewables had diminished", it said. BHP was now claiming the plan it had devised to hit net zero in the Pilbara by 2050 had a "low probability of success," the Guardian reports.
What's next for BHP shares?
It looks like BHP shares have now reached a ceiling.
Analysts are mostly reserved about the outlook for the mining giant over the next 12 months.
Market Index brokers have a hold rating on BHP shares and tip a 2% downside to an average target price of $58.77.
The data is similar on TradingView. Out of 19 analysts, 14 have a hold rating on the mining stock. Another four rate the shares as a strong buy, and 1 rates them as a sell.
The average $57.36 target price implies a potential 4% downside at the time of writing. But some think the shares could crash 34% to $39.67, and others think the stock can still climb another 15% to $69.03 within the next 12 months.
